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    The Main Reason Behind The Increase In Labour Costs In Asian Clothing Industry

    2011/9/22 15:25:00 23

    The Main Reason For The Increase In Labour Costs In Asia

    What factors will lead to labour in the future? cost Rise? Which country's wages will inevitably rise? The Asian Development Bank (ADB) gave answers to these questions in the August Quality Employment in Asia report. The most populous country in the world is currently experiencing the necessity to transform from export oriented to consumer driven economy. Therefore, the solution is to raise wages to improve the consumer capacity of these developing countries.


    Will future clothing prices increase?


    In order to reduce poverty and injustice, some countries have raised their minimum level. wages 。 Usually this move represents an increase in the cost of production in the Asian garment industry and an additional jump in clothing prices in Europe and the United States.


    In addition, low developed countries also try to remain competitive and keep labor costs low. So, what decisive factors will distinguish the low cost countries in the next few years? The answer is the scale of the "informal sector". The informal industry mainly includes the rural labor force and the free trade population in the metropolitan area. These manpower are relative to those employed in the official register of factory or employed in the service industry.


    Informal industry, retaining low cost labor


    Because there are huge informal industries, the domestic industry can easily find low. wages The cost of manpower is employed. However, Karl Mark, now known as the "labor reserve force", will be exhausted in some countries, especially in mainland China. Marx, In contrast, the size of informal industries in poor countries such as Bangladesh is increasing.


    Surprisingly, compared with the gradual decline of informal industries in mainland China, the rapidly developing emerging countries will also maintain a very large informal industry. India and Indonesia are one example. Therefore, the transition from low wage industrial jobs to high paid jobs in these two countries may be longer than expected.


    The promotion of productivity can offset high wages.


    All over the world, there is demand for wage increases. Probably It will be offset by high productivity. In some countries, such as India, the growth of productivity is faster than that of wages, and it also enhances India's competitiveness in the global economic market.


    On the other hand, wage rises in mainland China are faster than productivity growth, which explains the shift from low cost industries to high paying jobs. It is expected that the aging of China's population will also limit the future growth of productivity, especially in the garment industry. Another problem of garment factories in mainland China is that the scale of informal industries is shrinking, which leads to the reduction of migrant workers in the future.

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