Q&A
What are some of the trends which can be seen in China’s wage-labor market in 2015?
What are some of the trends which can be seen in China’s wage-labor market in 2015?
China has been a popular destination for foreign manufacturers because of its cost-effectiveness. Low wages and taxes combined with a well-constructed supply chain infrastructure have been attractive attributes of the Chinese wage-labor market. However, due to the Chinese government’s new economic goals, there exists political will to change the cost-effective nature of the market into that of one higher up the added value supply chain. For this reason, China’s wages as well as the associated welfare costs have been rising by an average of 15 percent per annum for the past six years.
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