China labor costs are still low...but they're rising.

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.