Expert: China still has edge in low-cost labor

17:08, June 28, 2010      

Email | Print | Subscribe | Comments | Forum 

China's labor force costs remain competitive worldwide, said Niu Wenyuan, chief scientist of the Chinese Academy of Sciences.

Niu has analyzed the transition of China's economic development mode and population migration patterns.

He said the short-term decrease in labor force demands of eastern China due to the global financial crisis had no impact on the direction and intensity of China's population flow over the last year.

Niu said in his research report that currently the labor cost indices of United States, Japan, Hong Kong, South Africa, South Korea and India are 3.1, 3.0, 2.9, 2.6, 2.2 and 1.3, respectively, in comparison to China's labor cost index of 1.0.

Niu said though some developed eastern regions of China show a tendency for labor shortages, there is no probability that China’s economy in the next 10 years will hit the Lewis Turning Point, which refers to the stage of development where surplus labor from the countryside runs out and wages increase.

He said China has a vast territory, a large proportion of primary industry population and ample room for industrial transfer. Therefore, China's demographic dividend still has great potential.

The report also shows that currently there are total 210 million rural laborers in China, of which 90 million rural migrant labors already live in cities and towns.

It is reported that 65 percent of the transient population has flowed into eastern China, 30 percent into central parts and 5 percent into western regions.

It is also reported that rural migrant laborers constitute 80 percent of national farmer incomes.

The nurturing role for the countryside, agriculture and families has become an important factor for narrowing the income gap and promoting wealth in rural areas.

Niu argues that the adjustment of income distribution significantly increased payments for laborers, thus making the "social dependency ratio" gradually transform from simply calculating in accordance with the proportion of dependants to calculating both in accordance with the population and the number of dependants.

Liu said it can be expected that China's first demographic dividend is still available.

By People's Daily Online

(Editor:李牧(实习))

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • A man visits "Thy Word Is Truth, the Bible Ministry Exhibition of the Protestant Church in China", during its opening at Mount Vernon Place United Methodist Church in Washington DC, capital of the United States, Sept. 28, 2011. Through the Bible's various Chinese versions, ancient or modern, as well as pictures, paintings, calligraphy, art works and historical documents, the exhibition was expected to give an overall understanding of how Bible was brought into China, how it was translated, published, distributed and loved. (Xinhua/Zhang Jun)
  • A visitor passes by in the exhibition of Istanbul design week on Sept. 28, 2011 in Istanbul, Turkey. Istanbul design week will be hosting designers and design exhibitions from around the world in Istanbul from Sept 28 to Oct 2 with the participation of 25 countries. (Xinhua/Ma yan)
  • Red flag flies at the Jiuquan Satellite Launch Center in northwest China's Gansu Province, Sept. 28, 2011. A spokesperson with China's manned space program said Wednesday that fuel has been injected into the Long March-2FT1 carrier rocket in preparation for launching the Tiangong-1 space module Thursday evening as planned. (Xinhua/Wang Jianmin)
  • A militant loyal to the Libyan National Transitional Council (NTC) waves in a tank near Bani Walid, one of the pro-Muammar Gaddafi strongholds, on Sept. 28, 2011. (Xinhua/Hamza Turkia)
  • Jewish worshippers pray at the Western Wall, Judaism's holiest prayer site, in Jerusalem's Old City on Sept. 28, 2011, ahead of Rosh Hashanah, the two-day Jewish new year which will begin at sunset on Sept. 28 and conclude at nightfall on Sept. 30. (Xinhua/Muammar Awad)
  • High school student Johanna Choapa is helped by her father after announcing the end of hunger strike in Santiago, capital of Chile, on Sept. 28, 2011. The end of the strike took place to make way for a dialogue with the government, seeking to resolve the four-month crisis in the education sector. (Xinhua/Jorge Villegas)
Hot Forum Discussion