Apple suppliers struggling to hire workers ahead of iPhone 13 launch
- Apple suppliers are struggling to find workers.
- Companies like Foxconn have resorted to dramatically increasing pay packages.
Reports show that Apple's suppliers for the iPhone 13 are having a hard time hiring enough workers ahead of the expected launch in September. It's typical for Apple suppliers to go on a hiring spree in mid-Q3 ahead of the new iPhones going into mass production. But this year around, there are just not enough workers willing to work.
Apple suppliers in China have started significantly raising their starter bonuses in an attempt to attract enough workers to meet the demand. Foxconn’s factory in Zhengzhou has raised its new hire bonus to a record high of 10,200 yuan, which is equivalent to 1,578 U.S. dollars.
Foxconn is not the only supplier that has dramatically increased its bonus. Popular Apple supplier Lens Technology just doubled its bonus and is now offering 10,000 yuan for all new workers, but in order to be eligible, they must be employed for at least 7 months or 20 days per month.
Similarly, Luxshare Precision has also doubled its starter bonus, and it now sits at 5,000 yuan. They are also currently offering 3,800 Yuan to former workers who are willing to return to the company.
This report also highlights that as China's labor force grows, the factory jobs are starting to lose their appeal as more and more workers start to move away from industrial labor. This explains why companies like Foxconn are having to essentially bribe workers with more attractive pay packages.
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