WSJ: China Wages Rose Sharply in 2012

Discussion in 'China' started by mylegend, May 17, 2013.

  1. mylegend

    mylegend Regular Member

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    BEIJING—Wages in China continued to climb at a double-digit pace last year despite slower economic growth.

    The increase moderated slightly from the previous year in nominal terms but was actually faster when inflation was taken into account

    [​IMG]
    Workers getting around at an aircraft-maintenance company in Fujian province; real wage growth in China accelerated last year even as economic growth slowed.

    Average wages for employees at non-private enterprises were up 11.9% from the year before in nominal terms, to 46,769 yuan ($7,543), the National Bureau of Statistics said in a statement Friday, compared with a 14.4% pace in 2011.

    Non-private enterprises include state-owned companies, listed companies and joint ventures.

    Average wages for employees at private companies were up 17.1% to 28,752 yuan, compared with an 18.3% pace in 2011.

    Slower economic growth has affected nominal salary increases, the statistics bureau said, but real salary growth—after inflation—accelerated in 2012 as "companies actively responded to rising competition [in the labor market] and tried to ease recruitment difficulties."

    The continued rise in wages, even as China's economic growth slowed to 7.8% last year from 9.3% in 2011, is likely to put fresh pressure on manufacturers already pinched by deteriorating profits, especially in low-end and labor-intensive industries.

    With inflation taken into account, wages of employees at nonprivate companies were up 9% in 2012 from a year earlier, exceeding 2011's 8.5% pace. Real wages in the private sector were up 14%, accelerating from 12.3% in 2011.

    The statistics bureau said "there was still a significant gap among regions, industries and specific jobs in some sectors," with wages in manufacturing and construction, which account for 41.2% of all employees, still well below the overall average.

    Nominal wages at nonprivate enterprises were up 13.6% in both the manufacturing and construction sectors, to 41,650 yuan and 36,483 yuan, respectively.

    Wages were up 16.5% in the nonprivate category combining agriculture, forestry, animal husbandry and fishery, though the absolute annual wage level was the lowest of all categories at 22,687 yuan. The highest annual wages were in the finance sector where the average was 89,743 yuan, up 10.6%.

    "China will continue to deepen its reforms of income distribution, improve its wage mechanisms and establish a normal wage increase system to help middle and low income people," the bureau said.

    —Yajun Zhang


    China Wages Rose Sharply in 2012 - WSJ.com
     
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  3. Ray

    Ray The Chairman Defence Professionals Moderator

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    When the economy does well, the it natural for aspiration to rise and so higher wages are a correct step.
     
  4. badguy2000

    badguy2000 Respected Member Senior Member

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    10 years ago,wages in mainland china was 1/10~1/20 of hongkongese or taiwanese. Now,it is 1/3~1/5 of that
     
  5. rockdog

    rockdog Regular Member

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    Lots of manufacture already moved into tier3-4 cities of inland China. And those cities still have better infrastructure than most developing nations like India, now it's Inland China vs other Developing nations. The tier 1 cities is fast approaching to low-income developed nations.
     
  6. huaxia rox

    huaxia rox Senior Member Senior Member

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    for a country that has real growth of economy this is inevetable.

    but policies should be made to help private owned companies and companies in the west of prc.

    when you talking about average salary companeies of the east and from state owned can make the figure seem a little bit of distorted.
     

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