Over-supply and underemployment will remain a challenge for the Chinese government for years to come, a senior official has said.

According to Wei Chao'an, vice minister of agriculture, competition for work in the Asian superpower's vast rural areas will remain high for the foreseeable future, despite the release of reports claiming that labor shortages are occurring in coastal towns.

Speaking at the annual session of the National People's Congress, the politician highlighted the 230 million migrant workers currently in China's labor market as indicative of the problem, Xinhua news agency reported.

Mr Chao'an claimed it is proving complex for the government to relocate redundant laborers into metropolitan areas, where more job opportunities are currently available.

"We need further analysis on the reported labor shortage," he told the news provider.

"On the one hand, it is difficult for enterprises in coastal areas to recruit enough workers this year. And on the other hand, it is difficult for the countryside to transfer its redundant laborers to cities for employment," he added.

Earlier this week, Financial Times correspondent Lisa Thomas said businesses in China will launch a "war for talent" as the country exits the economic downturn.