Apple Suppliers in China Struggling to Hire Workers Ahead of iPhone 13 Launch

BY Rajesh Pandey

Published 6 Aug 2021

iPhone 13 iPhone 12s dummy unit

Ahead of the iPhone 13 launch next month, Apple suppliers are looking to hire more seasonal workers as production for the new iPhone ramps up. However, they are struggling to hire enough workers, due to which they are raising their starter bonuses to attract more workers.

It is typical of Apple suppliers to go on a hiring spree in mid-Q3 ahead of the new iPhones going into mass production.

The South China Morning Post report states that Apple suppliers are finding it difficult to find young Chinese workers for manufacturing workers amidst stiff competition. Young Chinese people are now also becoming reluctant to join manufacturing jobs.

Due to this, Foxconn, Apple’s biggest supplier, is now offering a joining bonus of as much as 10,200 yuan ($1,600) for workers employed for at least 90 days. The company previously increased this joining reward to 10,000 yuan in late July. Out of the total bonus amount of 10,200 yuan, 9500 will go to the worker, while the remaining 700 yuan will go to the person who referred them.

Another Apple supplier Lens Technology has doubled its bonus for new joiners. It is now offering 10,000 yuan for new workers, though to be eligible, they must be employed for 20 days per month for at least seven months. Similarly, Luxshare Precision has doubled its internal bonus to 5,000 yuan. It is also offering an additional 3,800 yuan bonus to former workers who are willing to return to the company.

The report highlights that as China’s economy grows, young Chinese folks are not interested in doing manufacturing jobs. The country’s labor force has also peaked.  This has led to a shortage of workers, which companies are trying to compensate by increasing wages.

[Via SCMP]