I imagine that most people who think about such matters would imagine that China is still a sweatshop economy with manufacturing workers earning mere pennies per hour for their labour.
But the truth is different.
China's per hour wage rates have increased sharply in recent years and are now $US 14.60 per hour. That's above the minimum wage in the United States. And is just $7/hour below the average of US manufacturing wages.
We need to recalibrate the view we have of China as a source of cheap labour. It's not. Increasingly, it's a high labour market with a huge and growing middle class.
See the chart in this story.
But the truth is different.
China's per hour wage rates have increased sharply in recent years and are now $US 14.60 per hour. That's above the minimum wage in the United States. And is just $7/hour below the average of US manufacturing wages.
We need to recalibrate the view we have of China as a source of cheap labour. It's not. Increasingly, it's a high labour market with a huge and growing middle class.
See the chart in this story.
