Wednesday, August 04, 2010

The Latest on China Labor

This week's Economist has a must read article on the new era of labor in China. While labor in China remains incredibly cheap, only about $0.81 an hour, new standards for workers' compensation and other inputs are raising real factory wage costs in major cities to levels on par with Thailand and the Philippines.

A key takeaway is that the China game is growing up, not going away. The Pearl River Delta may be too rich for more and more manufacturers, but the interior and frontier areas of China, the origins of the huge supply of migrant labor that fuels coastal factories, are open for business.

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