Chinese wages now higher than in Brazil, Argentina and Mexico

The newspaper compared wages of several developing countries as well as South European countries with China’s manufacturing sector payments.

“Across China’s labour force as a whole, hourly incomes now exceed those in every major Latin American state apart from Chile, and are at around 70 per cent of the level in weaker eurozone countries, according to data from Euromonitor International, a research group.”

Chinese wages are higher then in Brazil and Mexico and rises up to the level of Portugal and Greece. But in the last case the reason for approach is not the China only, the wages drastically fell in both countries. In Latin America wages also have stagnated and fallen but in smaller scale.

Average hourly wages in China’s manufacturing sector trebled between 2005 and 2016 to $3.60, according to Euromonitor, while during the same period manufacturing wages fell from $2.90 an hour to $2.70 in Brazil, from $2.20 to $2.10 in Mexico, and from $4.30 to $3.60 in South Africa.

http _com.ft.imagepublish.prod.s3

Manufacturing wages in Portugal have plunged from $6.30 an hour to $4.50 last year, bringing wage levels below those in parts of eastern Europe and only leaving them 25 per cent higher than in China. The fast-rising wage levels mean China could also start to lose jobs to other developing countries willing to undercut it, but Oru Mohiuddin, strategy analyst at Euromonitor, explains Chinese domestic market grows so fast that it keeps industry inside the country: “It makes sense for [manufacturers] to be based in China”.

http _com.ft.imagepublish.prod30

Leave a Reply

Your email address will not be published. Required fields are marked *