The huge country which did not mind to steal the knowledge of others may be booming incredibly and ignoring its institutional amendments about equality between all people. As after the second World War in Europe thanks to the United States of America Europe may have had a growing industry with cheap labour force but having to get to expensive labour force because the governments tax so much, China’s labour productivity has grown quickly but over a few years they may face a big problem with an overproduction and people who will not take such injustice like there is now.
- China: rising wages will drive economic change under new leadership (blogs.ft.com)High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email firstname.lastname@example.org to buy additional rights. http://blogs.ft.com/beyond-brics/2013/03/07/china-rising-wages-will-drive-economic-change-under-new-leadership/#ixzz2QjNH6DbO
Higher wages and rising labour costs lie at the heart of the economic questions facing China’s leaders as they gather this week in Beijing for the National People’s Congress.
For hard-pressed exporters the developments are clearly negative. But for China as a whole they should be positive -with millions of workers earnings more pay and creating a growing consumer market – as long as the transition is managed properly.
Source: Deutsche Bank
- China Surging Wages Threaten Economy’s Competitiveness, ADB … – Bloomberg (bloomberg.com)
China’s surging wages and other costs are showing signs of undermining the competitiveness of the nation’s economy, threatening its growth potential, the Asian Development Bank said.
Average inflation-adjusted wages have more than tripled in a decade and non-wage costs for procedures such as hiring and firing have risen since the introduction of a 2008 labor law, the ADB said in a report published today.
The labor market is being squeezed across the nation as the pool of working-age people shrank last year. At stake is China’s position as the world’s biggest producer of low-cost goods, while competitors from Vietnam to Mexico stand to gain as investors seek to relocate to countries that have cheaper labor or are closer to big markets in the U.S. and Europe.
“Rapid aging of the population is taking its toll on the labor market,” Hamid L. Sharif, the ADB’s country director for China, said at a press briefing in Beijing. “Unless compensated by rising labor productivity, high wages would erode the economy’s competitiveness and growth potential, hampering government development plans.”
The obvious question then is: Why did the cost of labour increase so dramatically?
To prevent further harm to competitiveness China must ensure that increases in minimum wages don’t outpace gains in productivity, which should be fostered through incentives for companies to invest in new technologies, the ADB said.
- Focus on the wages paid by the Chinese (kaieteurnewsonline.com)
About 10 to 15 years ago, when I was an engineering student and before, I realised that the labour cost to construct a typical residential house on the coast of Guyana was approximately a third of the cost of materials.
Currently, anyone building a home will tell you that labour costs almost as much as the materials. Elementary reasoning will show that material costs never decreased, but rather, as the cost of materials increased over the years, as did the cost of labour. However, the cost of labour increased at a rate that was greater than the rate of cost increase of materials.
- Don’t Be So Quick to Congratulate China. (shootthescribe.wordpress.com)
The resurgence of the Chinese economy over the last twenty years is not a thing to be applauded. Essentially China remains a totalitarian state. It can produce cheap goods for the West because it has a vast, almost slave-labour force that works for very little money. This is not Capitalism. What is shocking is the West’s capitulation.
- Sample cheap overseas labor (slideshare.net)
It is a cryingshame that companies like Nike; Coca-cola, Adidas has the distinction of employing the largest number of cheap overseas labours in most inhospitable,hostile and inhuman surroundings, and then comes the breaking news. Strike by labours against the laws. Children exploited as cheap labour in Myanmar. Illegal migrants living and working in slave like conditions. Prisoners forced to work in exploitive and life threatening conditions in China. These were the headlines which surely have left every workers heart horrorstuck. Is this how we will achieve development?
- “Demand Surge” and the Implications for Policyholders (thechristchurchfiasco.wordpress.com)
Demand surge is defined as the demand for products and services exceeding the regional capacity to efficiently supply them. This phenomenon is relevant for both Christchurch post earthquakes, and for the east coast of the US post Hurricane Sandy. It is a common phenomenon around the world, post natural disaster. Demand surge is relevant to all affected policyholders in that the need for disaster relief and recovery supplies increases dramatically due to shortages and increased demand, forcing the cost of these goods upward as people rebuild. Post disaster insurance dollars pour into the affected region, but rebuilding is limited by materials and worker shortages. These in turn lead to rising wages and sometimes very substantial material price increases. Construction materials and costs (e.g. steel, timber, cement, building materials such as gib) are usually the most visibly effected by demand surge but energy prices for oil and gas may also rise.
Average inflation-adjusted wages have more than tripled in a decade and non-wage costs for procedures such as hiring and firing have risen since the introduction of a 2008 labor law, the ADB said in a new report.
The labour market is being squeezed across China as the pool of working-age people shrank 2012. At stake is China’s position as the world’s biggest producer of low-cost goods, while competitors from Vietnam to Mexico stand to gain as investors seek to relocate to countries that have cheaper labour or are closer to big markets in the U.S. and Europe.
“Rapid aging of the population is taking its toll on the labour market,” Hamid L. Sharif, the ADB’s country director for China, said at a press briefing…
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