Labour Costs in China decreased to 59.90 points in June from 60.70 points in May of 2025. This dataset provides - China Labour Costs - actual values, historical data, forecast, chart, statistics, economic calendar and news.

In April 2025, China's monthly labor cost index ranged at **** index points. This was down from ** points in the previous month.

In 2018, manufacturing labor costs in China were estimated to be **** U.S. dollars per hour. This is compared to an estimated **** U.S. dollars per hour in Mexico, and **** U.S. dollars in Vietnam. Manufacturing jobs in the United States Many people in the United States believe manufacturing jobs to be the backbone of the U.S. economy, despite employment in the manufacturing sector decreasing since 1997, and the monthly change in manufacturing employment being highly variable. Although manufacturing added a value of about ** percent to the U.S. gross domestic product (GDP) in 2018, employment in the United States has been moving away from manufacturing to other means of employment. A difference in earnings Part of this steering away from manufacturing could be due to a difference in labor costs. While hourly wages in Vietnam were less than * U.S. dollars in 2018, hourly wages in the U.S. manufacturing sector hovered around ** U.S. dollars in 2018. The labor costs in the U.S. could simply be too high for companies, who look to countries such as China, Mexico, and Vietnam for cheaper labor.

China Competitiveness Indicator: Relative Unit Labour Costs: Overall Economy data was reported at 97.921 2015=100 in 2025. This records a decrease from the previous number of 98.035 2015=100 for 2024. China Competitiveness Indicator: Relative Unit Labour Costs: Overall Economy data is updated yearly, averaging 74.713 2015=100 from Dec 1995 (Median) to 2025, with 31 observations. The data reached an all-time high of 102.164 2015=100 in 2022 and a record low of 34.753 2015=100 in 1995. China Competitiveness Indicator: Relative Unit Labour Costs: Overall Economy data remains active status in CEIC and is reported by Organisation for Economic Co-operation and Development. The data is categorized under Global Database’s China – Table CN.OECD.EO: Trade Statistics: Competitiveness Indicators In International Trade: Forecast: Non OECD Member: Annual. ULCDR - Indicator of competitiveness based on relative unit labour costs in total economyCompetitiveness-weighted relative unit labour costs for the overall economy in dollar terms. Competitiveness weights take into account the structure of competition in both export and import markets of the goods sector of 53 countries. An increase in the index indicates a real effective appreciation and a corresponding deterioration of the competitive position. Index, OECD reference year OECD calculation, see OECD Economic Outlook database documentation

Hong Kong HK: Labour Cost Index data was reported at 133.119 2010=100 in 2016. This records an increase from the previous number of 128.286 2010=100 for 2015. Hong Kong HK: Labour Cost Index data is updated yearly, averaging 91.817 2010=100 from Dec 1982 (Median) to 2016, with 35 observations. The data reached an all-time high of 133.119 2010=100 in 2016 and a record low of 26.804 2010=100 in 1982. Hong Kong HK: Labour Cost Index data remains active status in CEIC and is reported by International Monetary Fund. The data is categorized under Global Database’s Hong Kong SAR – Table HK.IMF.IFS: Wages, Labour Cost and Employment Index: Annual.

This statistic shows manufacturing labor costs per hour for select countries around the world for the years 2002, 2015 and 2019. In 2019, manufacturing labor costs in China were projected to rise to 4.8 U.S. dollars per hour, up from 60 cents in 2002.

Forecast: R&D Labour Costs for Internal R&D Personnel in China 2024 - 2028 Discover more data with ReportLinker!

According to a survey conducted among U.S. enterprises in China in 2022, 84 percent of companies believed labor costs would increase to varying extents. The resources & industrial sector as well as Tech and R&D expected the largest increases, with 95 and 86 percent of companies respectively anticipating costs per employee rising by 5 percent or more.

Graph and download economic data for Share of Labour Compensation in GDP at Current National Prices for China (LABSHPCNA156NRUG) from 1952 to 2019 about compensation, China, labor, and GDP.

Key information about China Labour Productivity Growth

• China Labour Productivity improved by 5.84 % YoY in Dec 2024, compared with a growth of 4.43 % in the previous year
• China Labour Productivity Growth data is updated yearly, available from Dec 1953 to Dec 2024, averaging at 7.34 %
• The data reached an all-time high of 15.12 % in Dec 1970 and a record low of -26.48 % in Dec 1961

CEIC calculates Labour Productivity Growth from annual Real GDP Index and annual Employment. The National Bureau of Statistics provides Real GDP, at 1978 prices. The Ministry of Human Resources and Social Security provides Employment. Employment excludes Foreign Nationals working within the country. Real GDP prior to 1979 is based on Real GDP PY=100.


Further information about China Labour Productivity Growth

• In the latest reports, China Population reached 1,408.28 Person mn in Dec 2024
• Its Unemployment Rate remained the same at 5.10 % in Dec 2024
• Monthly Earnings of China stood at 1,392.46 USD in Dec 2023
• The country's Labour Force Participation Rate increased to 65.83 % in Dec 2023

In 2019, the prices for labor and material in China's construction industry increased. Labor costs had an index value of 103.9, and material costs had an index value of 102.6. Over the years, expenditure for materials fluctuated, whereas the cost of labor increased continuously. It reflects a broader trend in China's labor market.

Wages in Manufacturing in China increased to 103932 CNY/Year in 2023 from 97528 CNY/Year in 2022. This dataset provides - China Average Yearly Wages in Manufacturing - actual values, historical data, forecast, chart, statistics, economic calendar and news.

China Convenience Store Climate Index: Store: Labour Cost data was reported at 40.200 % in Sep 2018. This records an increase from the previous number of 29.600 % for Jun 2018. China Convenience Store Climate Index: Store: Labour Cost data is updated quarterly, averaging 35.100 % from Mar 2017 (Median) to Sep 2018, with 7 observations. The data reached an all-time high of 40.200 % in Sep 2018 and a record low of 29.600 % in Jun 2018. China Convenience Store Climate Index: Store: Labour Cost data remains active status in CEIC and is reported by Ministry of Commerce. The data is categorized under China Premium Database’s Consumer Goods and Services – Table CN.HSA: Convenience Store Climate Index.

The cost of one hour of mechanic labor in automotive dealerships reached around 32 U.S. dollars in China in 2020. Hourly costs were overall similar, with less than 10 dollars of difference between the highest cost of labor in dealerships and the lowest cost in independent workshops.

Hong Kong HK: Wages Index: % Change data was reported at 3.889 % in 2016. This records a decrease from the previous number of 4.611 % for 2015. Hong Kong HK: Wages Index: % Change data is updated yearly, averaging 5.434 % from Dec 1982 (Median) to 2016, with 35 observations. The data reached an all-time high of 17.694 % in 1989 and a record low of -11.535 % in 2004. Hong Kong HK: Wages Index: % Change data remains active status in CEIC and is reported by International Monetary Fund. The data is categorized under Global Database’s Hong Kong SAR – Table HK.IMF.IFS: Wages, Labour Cost and Employment Index: Annual.

In 2025, the minimum hourly wage in Beijing was the highest in China at 26.4 yuan per hour. In the past decade, China has been shifting from a cheap labor driven economy to more matured, service-oriented markets and industries. While the economy continues to grow, prices and wages keep on increasing as well. How do wages differ across the country? China’s provinces and municipalities are divided into districts of different levels. Most provinces set different minimum wages for different districts depending on the cost of living and level of development. Usually, provincial capitals and major cities enjoy higher hourly wages than smaller towns and rural areas of the same province. In 2025, the highest minimum hourly wages in China were to be found in Beijing and Tianjin municipalities with 26.4 and 24.4 yuan respectively, whereas employees in Hainan province who received a minimum wage were paid the least – between 16.3 and 17.9 yuan per hour. Minimum monthly wages that year were the highest in Shanghai and the lowest in Qinghai province. The average annual salary in urban China was around 120,700 yuan in 2023. What are the prospects? Regional governments in China are required to update their minimum wages at least every few years. Hebei, Fujian, and Guangdong – provinces that have not adjusted minimum wages in the past two years – are likely to do so in 2025. Along with economic development, increasing living standards, increasing prices and a shrinking labor force, overall minimum wages will likely continue growing in China.

The index reflects the level of the total compensation of employees in the economy. The changes in the next to last column show the percent change in the index from three months ago (or the previous quarter if the data are quarterly) and the last column shows the percent change from the same month (or quarter) last year.

The statistic shows the distribution of the workforce across economic sectors in China from 2013 to 2023. In 2023, around 22.8 percent of the workforce were employed in the agricultural sector, 29.1 percent in the industrial sector and 48.1 percent in the service sector. This year, the share of agriculture increased for the first time in more than two decades, which highlights the difficult situation of the labor market due to the pandemic and economic downturn at the end of the year.

Distribution of the workforce in China

In 2012, China became the largest exporting country worldwide with an export value of about two trillion U.S. dollars. China’s economic system is largely based on growth and export, with the manufacturing sector being a crucial contributor to the country’s export competitiveness. Economic development was accompanied by a steady rise of labor costs, as well as a significant slowdown in labor force growth. These changes present a serious threat to the era of China as the world’s factory. The share of workforce in agriculture also steadily decreased in China until 2021, while the agricultural gross production value displayed continuous growth, amounting to approximately 7.8 trillion yuan in 2021.

Development of the service sector

Since 2011, the largest share of China’s labor force has been employed in the service sector. However, compared with developed countries, such as Japan or the United States, where 73 and 79 percent of the work force were active in services in 2021 respectively, the proportion of people working in the tertiary sector in China has been relatively low. The Chinese government aims to continue economic reform by moving from an emphasis on investment to consumption, among other measures. This might lead to a stronger service economy. Meanwhile, the size of the urban middle class in China is growing steadily. A growing number of affluent middle class consumers could promote consumption and help China move towards a balanced economy.

Hong Kong HK: Nominal Effective Exchange Rate Index: From Unit Labour Costs data was reported at 108.877 2010=100 in 2017. This records a decrease from the previous number of 110.088 2010=100 for 2016. Hong Kong HK: Nominal Effective Exchange Rate Index: From Unit Labour Costs data is updated yearly, averaging 106.235 2010=100 from Dec 1995 (Median) to 2017, with 23 observations. The data reached an all-time high of 122.558 2010=100 in 2001 and a record low of 94.803 2010=100 in 2011. Hong Kong HK: Nominal Effective Exchange Rate Index: From Unit Labour Costs data remains active status in CEIC and is reported by International Monetary Fund. The data is categorized under Global Database’s Hong Kong SAR – Table HK.IMF.IFS: Nominal and Real Effective Exchange Rate Index: Annual.

Hong Kong HK: Wages Index data was reported at 134.602 2010=100 in 2016. This records an increase from the previous number of 129.563 2010=100 for 2015. Hong Kong HK: Wages Index data is updated yearly, averaging 92.329 2010=100 from Dec 1981 (Median) to 2016, with 36 observations. The data reached an all-time high of 134.602 2010=100 in 2016 and a record low of 14.334 2010=100 in 1981. Hong Kong HK: Wages Index data remains active status in CEIC and is reported by International Monetary Fund. The data is categorized under Global Database’s Hong Kong SAR – Table HK.IMF.IFS: Wages, Labour Cost and Employment Index: Annual.