Drop in low-cost labor forecast

The country's abundant supply of low-cost labor, seen as a backbone of its remarkable economic expansion, could stop growing in one or two years and start dropping in eight to 10 years, a senior economics expert said yesterday.

The transition into a balanced labor supply could also feature shortages in regional areas, Cai Fang, director of the Institute of Population and Labor Economics, said.

"The fundamentals of a large labor force have changed, as indicated in the shortage of migrant workers," he said.