A huge challenge confronted by the World Factory today is how to organize and control labor in a sustainable and effective manner. Most literature focuses on production politics,but neglects how the labor market in the manufacturing industry is organized. Based on fieldwork in the manufacturing industry in city W,this paper analyzes the configuration of the organizational ecology and institutional environment where recruitment takes place. It argues that such configuration has evolved into an intermediary chain,composed of multilevel outsourcing,elaborate division of labor,and constant competition and cooperation. To coordinate the flexible production,this chain develops a profit model that increases labor cost,aggravates labor turnover,and lowers labor skill. Key social forces that constitute the institutional environment include the local government, workers, and the corporations. Each manipulates the partial"flexibility"to its own interest. However,such flexibility unintentionally enlarges the risk of the production system as a whole.