The labour cost in China is rising too rapidly

Discussion in 'Members Corner' started by badguy2000, Dec 13, 2012.

  1. badguy2000

    badguy2000 Respected Member Senior Member

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    well, My son was born several weeks ago...I am looking for a babysitter now....

    but to my surprise, the popular monthly wage of babysitter here now is about 2500+3000 RMB(about 400-500 USD) plus free lodging and food,although here is just a 4-tier city .....

    I still remember that the monthly wage of babysitter was just 1000-1500 RMB plus free lodging and food, just 5 years ago.

    according to such tendency, people here maybe have to look for babysitter from The Philippines and other poorer countries.
     
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  3. Rage

    Rage DFI TEAM Stars and Ambassadors

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    How does China define Tier-cities?
     
  4. hbogyt

    hbogyt Regular Member

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    Comrade, thou shalt not outsource our jobs.
     
  5. cloud_9

    cloud_9 Regular Member

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    ^^ Reaping the benefits of Outsourcing :laugh:
     
  6. Yusuf

    Yusuf GUARDIAN Administrator

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    Labour costs have been on te rise for quite some time. A factory in Taiwan that I work with said they started a factory in China when labor was about $250-300. It's now touching $600.
     
  7. jalsa

    jalsa Regular Member

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    Thats a bad thing, we may not get cheap electronic products in the future.
     
  8. chase

    chase Tihar Jail Banned

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    maybe its time now india reforms its labour and land laws so that the factories start shifting here
     
  9. no smoking

    no smoking Senior Member Senior Member

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    Based on your govt speed, we may see that after vietnam and philipine's labour cost rising.
     
  10. badguy2000

    badguy2000 Respected Member Senior Member

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    tier1 cities : Beijing,Shanghai, Guangzhou and Shenzhen

    Tier 2 cities : most province capitals and some developed cities such as Dalian, Qingdao and Ninbo.

    the definition of Tier 3 cities and Tier 4 cities are not so clear....
    The city where I live,Ganzhou, obvioulsy doesn't belong to Tier 1 and Tier 2 cities .

    It is a undeveloped prefecture-level city,so it is proper that Ganzhou is a tier 4 cities.
     
  11. hbogyt

    hbogyt Regular Member

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    Of course, the ideal case is taking all the jobs while giving none.
     
  12. Yusuf

    Yusuf GUARDIAN Administrator

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    Tell me why you should not be infracted for trolling
     
  13. Rage

    Rage DFI TEAM Stars and Ambassadors

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    I gather that Ganzhou, being the largest city in Jiangxi province, and also because it is a prefecture-level municipality (tertiary>primary) with about 9 mln. people within its prefectural limits, is actually a Tier-III city.
     
  14. amoy

    amoy Senior Member Senior Member

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    I don't think Ganzhou is the largest in Jiangxi Province. That shall be Nanchang @badguy correct me if wrong.

    China's administrative levels
    Province / Autonomous Region / Special AR / Municipality direct under the Central >>>> Prefecture / Municipality (under Province) >>>> County

    That 9mln may have referred to the whole Ganzhou Prefecture, not Ganzhou City the centre for the prefecture.

    As for the tier structuring (t-1 t-4 alike) IMO it's confusing, due to lack of consistency. Maybe Badguy's parameters are based on "GDP or income per capita", or economy size, or... But being multidimensional, not always consistent, and often controversial.

    As far as I can see, the consistent way of tiering is by administrative level. Therefore T-1 includes Beijing Shanghai, Tianjin, Chongqing. Not perfect, but at least "consistent" :namaste:

    As for Shenzhen, Guangzhou, Qingdao , Ningbo, Wuhan and so on, they're big. But how big to be entitled to t-1 or t-2, in economy, or sheer area, or population? That has to be defined and quantified.
     
  15. Rage

    Rage DFI TEAM Stars and Ambassadors

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    If I'm not wrong, Nanchang has a pop. of about 5mln. within its prefectural limits, while Ganzhou has a population of about 9mln.

    Also, I remember reading somewhere that although there was no definition for classifying cities into Tiers in China, the general distinction Tier-III cities (and above) have was that their service sectors outperformed or were larger than their primary/agricultural sectors.

    It would seem strange to me that Nanchang was classified as a Tier III city, but Ganzhou was not.

    It's kinda like the situation of Bhopal vs Indore in the Indian state of MP. Although Bhopal is the administrative capital and classified as a B-1 city (under the Sixth Central Pay Commission) it would be strange if Indore was also not.
     
  16. badguy2000

    badguy2000 Respected Member Senior Member

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    although Nanchang is the capital of Jiangxi Province, it is much poorer than typical Tier 2 cities such as Chongqing,Dalian and Qingdao.


    So, Nanchang is usually looked on as a Tier 3 cities.

    And Ganzhou is much poorer than Nanchang,so, Ganzhou is usually looked on as a Tier4 cities.

    BTW, the total population of Ganzhou is 9 Min,more than 5 Min of Nanchang city.

    However the population of Ganzhou center urban area is only about 0.7 min,much less than 3 Min of Nanchang city.

    the GDP of Ganzhou city is also only 1/3 of Nanchang city.
     
    Last edited: Dec 14, 2012
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  17. amoy

    amoy Senior Member Senior Member

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    That 's why I said lack of "consistency" :laugh:

    Maybe now Ganzhou is traumatic since rear earth exploration has been suspended? or not?

    So nanny's wage has soared there? That's indeed the same every where. But no tax / insurance out of pocket.

    For the average labor cost, think about mandatory insurance / housing fund... The housing fund the employer covers may be 12% max. of salary but many private ent. don't pay that.
     
  18. Rage

    Rage DFI TEAM Stars and Ambassadors

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    That's interesting. Seems like a fair assessment then.

    Is it usually the case that the most wealthy cities become provincial capitals in China? How have provincial capitals traditionally been determined?

    Because traditionally state capitals in India have been determined by virtue of their being seats of governance in princely states and India is full of examples where the largest (economically) cities in states are not their capitals.
     

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