Report: Chinese Wages Now Higher Than In Brazil, Argentina And Mexico.
China has held the status of "the world's factory", the largest supply of inexpensive labor for industrial production across the globe. But the new data from a market research reported the average manufacturing wages in China rose to $3.60 an hour last year.
According to China Economic Review, average hourly wages in China's manufacturing sector trebled between 2005 and 2016 to $3.60. During the same period, the manufacturing wages fell from $2.90 an hour to $2.70 an hour to Brazil, from $4.30 to $3.60 in South Africa and $2.20 to $2.10 in Mexico.
The Euro monitor report has clearly stated that the Chinese factory wages are now higher than in Mexico, Argentina, and Mexico. China's average wage is more than five times manufacturing wages in India and also high such as Portugal, Brazil, and South Africa.
VOX has reported that it's a striking illustration of how China's economic growth is impacting the lives of ordinary Chinese citizens, improving the quality of life for huge portions of the populations. But this is also highlighting the questions about the China's future growth rate.
The rising wages also present an enormous challenge to China's economy sector. As wages grow the country's ability to attract investors will be diminished. ANZ Bank economists have estimated that China will be the "world's factory" within 10 to 15 years.
China is becoming increasingly vulnerable to the very kinds of labor market displacement after the country joined the World Trade Organization. That time US manufacturing sector saw a significant uptick in unemployment after millions of US jobs migrated to China.
However, the report indicates that China cannot continue to rely on its industrial might in order to continue growing. The China is concerned that failing of life for large portions of the population will dramatically increase the likelihood of social unrest.
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