Cost pressure squeezes Asian growth
I attended a meeting in Chengdu, Sichuan Province last week. The most frequent word mentioned by local officials and scholars there was "industry." They are very proud that the number of local jobs created in Sichuan has now surpassed the number of workers leaving to work outside the province, since Sichuan has been known for migrant workers for several decades. What has caused this rise in jobs? Besides the stimulus of certain industrial policies, the labor price advantage is one of the main factors. Apple has set up a factory in Sichuan, reportedly employing over 100,000 workers. The minimum wage of the workers is 1,880 yuan ($300) per month, approximately the same as the salary of senior managers of garment factories in Cambodia... They are satisfied with their monthly salary of over $100, which is much higher than the Cambodian minimum wage of $66. One woman worker told me that she is expecting a salary rise, but is satisfied with her current income...
