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DesideriScuri -> RE: Thoughts on taxes (2/26/2015 1:31:14 PM)
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ORIGINAL: Kirata
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ORIGINAL: DesideriScuri
Mfg. Wages have more than doubled in that 5 year period. Inflation is 3%/yr. I'm thinking real wages, then, are still going up pretty well. The article mentions wages (not real wages) going up 18% annually (at the time of the article). But, 18%>3%, so....
I interpreted the chart you posted as showing wages rising by a little over 2% between 2007 and 2012 (the vertical axis wasn't labeled). But I still have to wonder. Doubling the wages of someone earning $50 a month is not much of a wowza. That said, though, fair enough. I'll keep an open mind.
K.
While the vertical axis wasn't labeled, it was noted that both wages were indexed to 1 initially. So, it going from 1 to 2.5-ish...
I can see how it could have been seen as the yearly % increase, though.
But, if you were making $25/whatever, wouldn't $50 be quite an increase? I understand that $25 increase isn't going very far, in the US, but we aren't talking about the US, either.
https://www.ventureoutsource.com/contract-manufacturing/2011-china-manufacturing-hourly-labor-rate-compensation-costs-emsquote:
Though manufacturing workers in China are earning more than ever before, average hourly compensation costs were only $1.36 in 2008.
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The published data on average weekly hours worked in China’s urban manufacturing sector at the beginning of November each year show a decrease from 50.4 hours per week in 2006 to 47.9 hours per week in 2008.
Meanwhile, hourly compensation growth rates in China’s manufacturing sector have been rising steadily, and comparatively quickly.
Consider that, from 2002 to 2008, hourly labor costs in the manufacturing sector in the United States increased by 19%, while the corresponding figure in China grew 100%.
Three reasons for rising China compensation costs
One reason for rising manufacturing labor compensation costs in China the report highlights is the rising literacy, numeracy, and educational attainment of even unskilled and semi-skilled Chinese employees from rural as well as urban areas, and even greater increases in the human capital embodied in skilled workers and high-talent employees.
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Another reason for the surging cost of labor in Chinese manufacturing today is a new employment contract law (also called a labor contract law) that came into effect in 2008.
The law gives workers the right to have a signed labor contract, protects the working conditions and timely payment of wages to employees, limits overtime work, requires payments to compulsory social insurance schemes for employees, and makes it much more difficult to fire workers.
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A third reason for rising compensation costs in China is the growing shortage of workers.
Certainly, the wages are lower than they are in the US, but they are going up. The article also mentioned a child labor (labor by people 0-14 years old) lower than expected for a developing economy.
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