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China – More than 200 Clients Talk Wages in the PRD

Posted on2021年9月11日 By培训机构时间表

Wages are still rising in China‟s manufacturing heartland, albeit at a slower pace than last year, according to the results of our third annual survey of clients about wage trends in the Pearl River Delta (PRD).
Conducted after the Lunar New Year holiday in late January, the survey received an overwhelming 204 responses – all from Hong Kong manufacturers, big and small, who operate in the PRD. We would like to thank the clients who took part, and the Standard Chartered relationship managers who facilitated everything.
Our main findings are as follows:
--Wages in the PRD are up 10% this year, less than last year‟s 11% and the 15-20% rates sometimes reported in local media.
--Most respondents are seeing labour shortages at least as bad as those seen last year.
--Formal wage negotiations are still uncommon, but companies are facing stricter enforcement of social insurance requirements.
--Investing in capital equipment to replace workers is by far the most common response to labour shortages.
--More companies are considering moving inland than are considering leaving China.
--Higher productivity helps to explain (and absorb) higher wages; the majority of companies say output per worker has risen faster than wages.
--More companies saw orders improve than decline over the past six months; the outlook for the next six months is not too bleak.
--Most companies expect the Chinese yuan (CNY) to appreciate 0-5% against the US dollar (USD) this year.


China – More than 200 Clients Talk Wages in the PRD
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