The number of North Korean workers in Dandong has plummeted dramatically, creating ripple effects across border communities and highlighting the complex dynamics of cross-border labor arrangements.
“Currently, fewer than 10,000 North Korean laborers remain in Dandong. At its peak, there were 70,000-80,000 North Korean workers in Dandong alone. Only about 1/8 of them remain now,” a source in China recently claimed.
This massive exodus has altered the economic landscape along the China-North Korea border. The source said that Chinese factory owners and business operators are expressing frustration as their operations struggle without the reliable workforce they had come to depend on.
The ongoing departure has forced some smaller factories employing fewer than 100 North Korean workers to permanently close, while larger manufacturing facilities continue operating but face uncertain futures as remaining workers prepare to return home within the year.
Economic advantages drive employer preferences
The preference for North Korean labor among Chinese employers stems from significant cost advantages and working conditions that would be illegal under Chinese law for Chinese workers.
“Chinese people who work at clothing companies usually receive 4,000-5,000 yuan ($560-700) in monthly salary, but when North Koreans come here to work, 2,300 yuan ($320) is sufficient,” explained the source.
The wage gap represents wages that are “an order of five to six times more than anything these women could earn in North Korea,” yet still provide substantial savings for Chinese employers.
Working conditions create additional advantages for factory owners beyond just wages.
“North Koreans are able to work 12 hour to even 14 hour days, while Chinese people are limited to just 8 hours and get holidays off not to mention receive social benefits, so factory owners and managers prefer far cheaper North Korean labor,” the source noted.
Additionally, “when Chinese people are hired, companies must pay for medical insurance and social security costs,” but no such obligations exist for North Korean workers.
These labor practices have created a dual reaction among the Chinese population. Low-income Chinese workers viewed North Korean laborers as direct threats to their employment opportunities.
However, as the source observed: “Middle-class Chinese people want to hire more North Korean workers because they can assign them difficult, challenging, and dirty jobs that Chinese people don’t want to do. There’s a tendency to give all the demanding and complicated orders that Chinese workers find difficult to the North Koreans.”
A shift in foreign currency earning strategy
The reduction in workers in parts of China represents a potential financial blow to the North Korean government.
The U.S. State Department’s 2023 Trafficking in Persons Report indicates that “North Korea seizes as much as 90% of workers’ wages,” making this revenue stream crucial for the regime.
Amid efforts to reduce the number of laborers in parts of China, however, North Korea appears to be shifting its foreign currency strategies.
As one source in China recently told Daily NK, “Female workers in China earn less foreign currency than male construction workers in Russia. North Korean authorities likely feel the need to develop new foreign currency strategies that balance economic interests with their relationship with China.”
