China's 'low wage era' far from over: expert
- Source: Global Times
- [17:25 August 06 2010]
- Comments
An expert with the Renmin University of China said on Thursday that, though the country has raised minimum wage levels in 27 provinces this year, this does not signify the end of the "low wage era" for Chinese employees.
Zeng Xiangquan made the comments in an interview with sina.com.cn.
Ten areas in China, including the provinces of Henan, Shaanxi and Anhui, raised their minimum wage levels since July 1.
And provinces including Zhejiang and Sichuan, as well as cities such as Chongqing, Guangzhou and Dongguan, are also considering a similar move.
The trend for higher salaries around the country and a shortage of job-seekers in China's southern provinces means that some employers are hiring migrant workers – who are now being better paid.
And the general public is hoping that the moves mean the end of low-paying employment in China.
But Zeng said the adjustment of income distribution does not mean the low-income population will become rich according to the standard of developed nations, as China's minimum wage level is still much lower than the international average.
He also said that not all companies comply with the minimum wage policy, and some even increase the working hours to reduce their costs.
Many people from rural areas have left their hometowns in search of employment opportunities in the cities, and they often end up with a low salary and no social security benefits.
Zeng added that migrants who have a monthly income of 1000 yuan ($147) – and this is not unusual – find it difficult to lead a decent life in cities.
And he suggested that offering training to acquire useful skills could help low-income job-seekers improve their chances of finding better jobs – and improve their quality of life.
