Still making it: an analysis of manufacturing labour costs in China

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The EIU has developed robust estimates of labour compensation per hour in China and each of its 31 provinces, forecast out to 2020. We anticipate that manufacturing labour costs in China will continue to increase steeply on an annual basis, albeit at a more moderate rate than in recent years. At the national level, The EIU expects annual earnings growth of 12% in 2013-20. However, even against established emerging markets. China is likely to remain price-competitive in manufacturing labour costs for a number of years to come.

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