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    Is Wage Cost A Burden Made In China? Spinning Costs Rise Linearly

    2010/7/26 18:09:00 55

    Wage Made In China

    A few days ago, the Ministry of human resources and Social Security announced the 23 regions to adjust the minimum wage standard. In July 25th, Xinjiang released the 2010 minimum wage standard adjustment plan, raised the monthly minimum wage standard and the hourly minimum wage standard, among which the monthly minimum wage standard increased by more than 20%.


    "

    Wage Ordinance

    "Drafting"


    In July 23rd, the Ministry of human resources informed that in the first half of the year, 23 regions had adjusted the minimum wage standard.

    Yin Chengji, spokesman for the Ministry of human resources, pointed out that, in the case of sufficient internal development power, timely and moderate increase in wages of workers is conducive to promoting domestic consumption, improving the basic life of workers, and also conducive to the construction of harmonious and stable labor relations.

    Yin Chengji also revealed that the current wage regulations are in the process of investigation, and the Ministry of human resources is further improving the drafting of the Ordinance with relevant departments and units.


    In addition, according to the Ministry of human resources data, the number of new jobs in cities and towns in the first half of the year was 6 million 380 thousand, which reached 71% of the target of 9 million people in the whole year.

    Yin Chengji said that the smooth employment pattern is gradually returning to the level before the financial crisis, but the structural contradiction between oversupply of labor force and employment has not changed.


    enterprise

    cost

    Rise sharply


    "Rising costs is an inevitable trend."

    Lee, a textile company in Guangzhou, told Li.

    International Financial Daily

    "Reporters, this year, wages have been rising, especially at the beginning of the year, in order to rush to work and rush orders, wage costs have risen by nearly 50%.

    Although it has declined, it is also around 20%.


    "Ready to move factories and headquarters to Chongqing."

    Gu Xinyi, a leather exporter, told the International Financial Daily that it is the general trend to move to the West under the rising cost and labor resources.


    Gu Xinyi said that because labor intensive industries are still one of the cornerstones of China's most important economic development, this situation is difficult to change in the short term.

    If the wage cost rises too fast, the competitiveness of Chinese enterprises will be sharply reduced.

    He suggested that, on the one hand, to raise wages for workers in China, on the other hand, the state's financial strength has been very strong. It is time to consider reducing taxes for enterprises.


    Lin Boqiang, director of the China Energy Economics Research Center of Xiamen University, believes that although the increase in wages will lead to weaker competitiveness, it will force enterprises to accelerate their pformation, improve their product mix and improve their operational efficiency; on the other hand, the increase in wages of employees will increase domestic purchasing power, which will also play a positive role in promoting China's economic development.

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