Houston Community News >> China wages increase

5/27/2006 Shanghai (AP)- THE average yearly wage in China increased by 14 percent in 2005 from the previous year, which indicates a rise in labor costs in the country, China News Service reported today.

The People’s Bank of China, the country’s central bank, said the rapidly increasing rate of the income per capita in China’s eastern area boosted the average level of the country, according to its 2005 financial report that was released yesterday. The average yearly salary of an employee hit 22,400 yuan (US$2,800) in China’s eastern area, 1.5 times of that than in the middle areas.

With huge developments taking place in the country’s agricultural industry, fewer farmers are willing to give up their land and make a living in the city. “A decrease in the number of laborers will surely lead to an increase in labor costs,” said the central bank. “Many enterprises in the coastal cities have to pay employees more to maintain its human resources.” Meanwhile, the country’s deposits broke 14 trillion yuan last year, up 18 percent from 2004. The increasing rate of deposits in 27 provinces was even faster than the GDP that year.

“The soar more or less reflects the fact that people are unwilling to invest into local security markets,” said the central bank. “People are saving more for housing and educational expenses.”