U.N. Shocker: Chinese Workers Underpaid (2024)

FAQs

U.N. Shocker: Chinese Workers Underpaid? ›

The ILO found wage earners in China made an average equivalent of just $656 a month, ranking them 57th out of the 72 countries the report covered. The key word is 'world' average. The world average was $1,480 a month. That includes countries from India to rich Luxemburg, where average workers earned $4,089 a month.

Weakening wage growth is occurring at a time when some factory owners say they can't find enough workers. Adverse demographic trends, including an aging population, are leaving some regions depleted of labor, and should in theory create favorable opportunities for workers.

In China, the average monthly salary is 29,300 Yuan (Chinese Yuan), equating to USD 4,214 (US dollars) per month according to the exchange rate in May 2023 (according to Salary Explorer). Note: Renminbi (abbreviated RMB) is the official currency of China.

Nearly a third of Chinese office workers reported falling salaries last year, the highest share in at least six years, underscoring persistent deflationary pressures in the world's second-largest economy.

The American Dream has led to economic growth and consolidation that benefits all Americans. American workers are paid more than Chinese workers because they are more productive. Chinese workers are less productive on average. They also save money for their families instead of buying things for themselves.

The payroll cycle in China is generally monthly, and payments are made on the last working day.

In some of the rural third tier regions of China, that would be someone's monthly salary. But in most of urban China, it wouldn't go very far. In Beijing and Shanghai, where I used to live, 100 US Dollars will actually go no further than they would in New York City or Los Angeles.

1) Average Salary in China, Country-wide

The 25th percentile of recruitment salaries is ¥6,001 RMB ($836 USD)/month, The median is ¥8,001 RMB ($1,115 USD)/month, The 75th percentile is ¥12,001 RMB ($1,672 USD)/month.

Healthcare in China is free for Chinese citizens and Chinese permanent residents. If you're a foreigner with permanent resident status you may be able to access government supported public health insurance. If not, you'll need private health cover.

Is the US losing jobs to China? ›

A comprehensive new CPA analysis of 927 U.S. cities and towns shows that job loss in manufacturing due to China imports since 2001 has affected almost every community in the U.S., including towns and cities in all fifty states. The hardest hit metro area is the San Jose, California metropolitan area.

The pickup in unemployment comes alongside evidence of a decline in average working hours in China, which economists often interpret as a sign that people are underemployed, or working well below their potential. A longstanding concern has been youth unemployment, which rose in June to more than 21%.

As a result, China is expected to face a shortage of 30 million skilled workers in the manufacturing sector by 2025, according to data from the Ministry of Human Resources and Social Security.

In 2022, the average price for residential real estate in Shenzhen was over 55.700 thousand yuan per square meter. This was the highest price among all major cities in China, with the average price across the country amounting to 17,359 yuan per square meter.

Regulatory measures in China stipulate an eight-hour workday and a 40-hour workweek, with at least one rest day. Employers can implement flexible work schedules if necessary. The intent is to create a framework that guards against overwork and supports a work-life balance.

At what age are children legally allowed to work in China? Children over 16 years of age are legally allowed to work in China. The responsibility is placed on families, schools, and the government to protect children.

Some consequences of China's rising wages

FDI shift and onshoring: There might be a shift of foreign direct investment away from China to lower-cost countries such as Vietnam and Bangladesh or back to developed economies (onshoring) such as the US which is benefitting from much lower energy costs.

Producers actively sought a Chinese location. As more and more western facilities located in China, however, and that economy otherwise developed, wages began to rise, and they did so much faster than wages rose in Europe and America.

Due to their ethnic appearance and language barriers, the Chinese were greatly taken advantage of by their employers. These Chinese laborers became pioneers in the collective labor actions of American labor history, while also contributing to the economies of the U.S. and China.

An analysis of the data for 2019 by a team from Beijing Normal University showed that in 2019, 43 percent of the population (600 million) had an income of less than 1,090 yuan per month, 69 percent had an income under 2,000 yuan, 84 percent less than 3,000 yuan per month and 95 percent earned less than 5,000 yuan.