China's Labor Market

8/8/2019 China's Labor Market

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Development EconomicsZohra Noushin Ahmed

08111-41


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Chinas Labor Market

The Economist

31st July 2010


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Outline

Introduction

The Workers are Revolting

Reasons

Steps Government can Take

Conclusion


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Introduction

Largest Workforce

Foreign Investment $500 billion Capital Stock

Employ 16m people

153 foreign stakeholders out of 200 exporters

Change in perceptions Workers to shoppers


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The Workers are Revolting


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280,000 labor disputes in 2008

30% higher labor disputes in 2009 Labor Law

employees of at least 10 years standing are entitledto contracts that protect them from being

dismissed without cause. Harsh labor conditions in factories

Inflation

Class consciousness


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$0.81 / hour or 2.7 % of their Americancounterparts

2002 2006 pay rose by 9% / yr. in rural areasand by 11% in cities

Lately, strikes have improved conditions(20% rise in cities)


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70 million future laborers in villages

Inadequate land policies

Number of Chinese aged 15 29 will decline

sharply in 2011


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1/6th of non-migrants feel too old to work ( justunder 40 years)

Tempt workers with higher wages


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1995 2004

Unit labor costs fell by 43% However, labor costs have risen since then


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China Price rose 6%

Lower wage countries coming to the fore Competition between western boomtowns and

coastal exporters


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Steps the Government could Take

Redrawing of Chinas industrial map Result in :

Rise of inland provinces and demand for labor Rise in wages and satisfied workers Increase spending power and erode high saving

rate

Increase demand for consumer services Result in a rise in price and have the same effect

as a stronger exchange rate.

Pricier products will benefit China


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Conclusion


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Thankyou

China's Labor Market

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