Shu-Ching Jean Chen, 04.02.08, 4:36 AM
< Summary >
China's official statistics agency has confirmed that the labor costs have been rising fast, showing the fastest growth in six years. The mean annual wage grew by 18.72% in 2007, to 24,932 yuan ($3,556.63), which is 14% higher than average of the preceding six years.
Though the agency did not release a detailed profile of each industry, China Business News pointed that state-protected industries, including securities, banking and aviation industries, had reported average yearly wages exceeding 100,000 yuan ($14,265.34) in 2007. That is more than five times of those for nonmetals mining and extraction, farming and traditional manufacturing lines.
Not only that, the businesses working in the areas like insurance, legal services, telecommunications, tobacco, oil and gas rewarded their employees well, paying a mean annual wage of between 80,000 yuan ($11,412.27) and 100,000 yuan.
>> Original Article
China is growing so fast! As many professionals suggest, it is going to be the number one within a decade or so. Even now, most of the industrial products are made in China, from the factories that international groups built in China. Even most of Nike’s shoes are made in China and exported to other countries. Also other types of companies in other industries such as service businesses or construction businesses are entering Chinese market, seeing great potential there.
China has been famous for its cheap labor cost. Many companies could save budget and make more profit. Yet nowadays, there are so many competitors and it is getting a bit hard to get good employees with comparably low salary. That must be why the labor cost is rising fast. Also Chinese Economy is growing fast, which indicates their GDP probably is increasing. People are much better off than they were 10 years ago, or even 6 years ago. Not only that, but the education is being emphasized as well, contributing the education level to get higher and people’s expectation get higher with it, too.
It is a great news that Chinese people’s life are better off yet as the news indicated, it’s better for the people with certain jobs, not the people with the low-prestige jobs. It is obvious that the gap between haves and have-nots would be deepened as it is in United States as well as in Korea. Chinese government should consider this matter and try to prevent it beforehand.
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