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China labor costs are still low...but they're rising.
China labor costs are still low...but they're rising.
February 26, 2008
The data is in from the first comprehensive wage study conducted in China and the results are instructive for US managers who source goods from China. The summary is:
- The average China hourly wage is $0.98/hr, so there is still a significant wage difference between the US and Chinese labor costs
- Benefits actually are a larger percentage of the hourly wage in China vs. the US
- Benefits rates are going up
- There is upward price pressure on wages that has and will continue to erode a portion of China's low cost manufacturing position amongst its global competitors (India, Vietnam, etc) but as they move up the value curve, China remains an attractive place to locate manufacturing and develop supplier partners.
See the article and data here.
Posted by Andy Mulkerin on February 26, 2008 | Comments (1)
March 31, 2008
In response to: China labor costs are still low...but they're rising.
Betty Chen commented:
In response to: China labor costs are still low...but they're rising.
Betty Chen commented:
Hi Andy, many of your articles here do arouse my intereste in your points. Could you pls add my MSN bchen830608@hotmail.com? I am sure the acquaintance will enrich both your life ank mine. Thank you for your attention.
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