In 2018, manufacturing labor costs in China were estimated to be 5.51 U.S. dollars per hour. This is compared to an estimated 4.45 U.S. dollars per hour in Mexico, and 2.73 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 10 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 three U.S. dollars in 2018, hourly wages in the U.S. manufacturing sector hovered around 27 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.

Labour Costs in China decreased to 58.80 points in February from 59.70 points in January of 2025. This dataset provides - China Labour Costs - actual values, historical data, forecast, chart, statistics, economic calendar and news.

In January 2025, China's monthly labor cost index ranged at 59.7 index points. This was down from 62.1 points in the previous month.

In 2023, the employment rate in China decreased to around 63.09 percent, from 63.57 percent in the previous year. China is the world’s most populous country and its rapid economic development over the past decades has profited greatly from its large labor market. While the overall working conditions for the Chinese people are improving, the actual size of the working-age population in China has been shrinking steadily in recent years. This is mainly due to a low birth rate in the country.

Economic slowdown – impact on labor market

After decades of rapid development, the world’s second largest economy now seems to have difficulties to boost its economy further. The GDP growth rate indicated a declining trend over the last decade and the number of employed people decreased for the first time since decades in 2015. Under the influence of the global economic downturn, the coronavirus pandemic, and the US-China tensions, many Chinese enterprises are having tough times, which leads to a recession in China’s labor market.

Chances for better employment situation

The long-lasting Sino-U.S. trade war has caused China great loss on its international trade sector, which has been driving China’s economic growth for decades. However, there is also a lot China could improve. First, the potential of domestic demands could be further developed and satisfied with high-quality products. Second, it’s a good timing to eliminate backward industries with low value added, and the high-tech and environment-friendly industries should be further promoted. In addition, China’s market could be more open to services, especially in the financial sector and IT services, to attract more foreign investors. Highly skilled talents should be better valued in the labor market. Efficient vocational education and further education could also help change the structure of China’s labor market.

Wages in China increased to 120698 CNY/Year in 2023 from 114029 CNY/Year in 2022. This dataset provides - China Average Yearly Wages - actual values, historical data, forecast, chart, statistics, economic calendar and news.

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.

Ratio of female to male labor force participation rate (%) (modeled ILO estimate) in China was reported at 83.73 % in 2023, according to the World Bank collection of development indicators, compiled from officially recognized sources. China - Ratio of female to male labor participation rate - actual values, historical data, forecasts and projections were sourced from the World Bank on March of 2025.

Key information about China Labour Force Participation Rate

• China Labour Force Participation Rate increased to 65.8 % in Dec 2023, compared with 65.8 % in the previous year.
• China Labour Force Participation Rate is updated yearly, available from Dec 1990 to Dec 2023, with an average rate of 72.1 % .
• The data reached the an all-time high of 79.2 % in Dec 1990 and a record low of 65.8 % in Dec 2022.
• China Labour Force Participation Rate is reported by reported by CEIC Data.
• In the latest reports, China Population reached 1,408.3 million people in Dec 2024.
• Unemployment Rate of China remained the same at 5.1 % in Dec 2024.
• The country's Monthly Earnings stood at 1,392.5 USD in Dec 2023.

Unemployment Rate in China increased to 5.40 percent in February from 5.20 percent in January of 2025. This dataset provides - China Unemployment Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

In 2023, the share of total population aged 15 and older that participated in the labor force in China ranged at around 66.4 percent. Labor force participation in China has gradually decreased over the last two decades.

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.

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.

China labor force participation rate for 2023 was 48.32%, a 0.1% decline from 2022.

• China labor force participation rate for 2022 was 48.42%, a 0.34% decline from 2021.
• China labor force participation rate for 2021 was 48.76%, a 1.87% increase from 2020.
• China labor force participation rate for 2020 was 46.88%, a 3.08% decline from 2019.

Foreign Direct Investment (FDI) is an important part of China’s new "double-cycle" development pattern. Among the many factors affecting FDI, will the aging population have an impact on manufacturing, the key industry for FDI? This paper examines the direct and indirect effects of an aging population on FDI using panel data from 27 manufacturing sub-industries in China between 2005 and 2020. It is found that (1) the deepening of the population’s aging negatively affects FDI inflows and this result continues to hold after a series of robustness tests. (2) Using labor quantity and labor cost as mediating variables, it is found that the population’s aging indirectly affects FDI by reducing labor quantity and increasing labor cost. (3) The heterogeneity analysis study finds that the deepening of the population’s aging significantly inhibits FDI in labor-intensive and capital-intensive industries among manufacturing sub-industries, and the inhibitory effect on FDI in technology-intensive industries is not significant. This study provides meso-evidence to support the findings of existing studies and provides suggestions and insights for the government to formulate relevant policies to actively cope with aging.

Test of labor quantity effect and labor cost effect of aging on FDI.

Hong Kong Labour Force Participation Rate: Qtr: Age Above 65 data was reported at 11.500 % in Mar 2018. This records an increase from the previous number of 10.700 % for Dec 2017. Hong Kong Labour Force Participation Rate: Qtr: Age Above 65 data is updated quarterly, averaging 8.150 % from Dec 1981 (Median) to Mar 2018, with 146 observations. The data reached an all-time high of 21.500 % in Mar 1982 and a record low of 5.100 % in Sep 2008. Hong Kong Labour Force Participation Rate: Qtr: Age Above 65 data remains active status in CEIC and is reported by Census and Statistics Department. The data is categorized under Global Database’s Hong Kong – Table HK.G017: Labour Force Participation Rate: GHS: RPA.

China Unemployment Rate: % Change data was reported at -2.353 % in 2017. This records a decrease from the previous number of -0.247 % for 2016. China Unemployment Rate: % Change data is updated yearly, averaging 0.000 % from Dec 1986 (Median) to 2017, with 32 observations. The data reached an all-time high of 30.000 % in 1989 and a record low of -8.000 % in 1991. China Unemployment Rate: % Change data remains active status in CEIC and is reported by International Monetary Fund. The data is categorized under Global Database’s China – Table CN.IMF.IFS: Labour Force, Employment and Unemployment: Annual.

Hong Kong Labour Force Participation Rate: Qtr: Male: Age 50 to 54 data was reported at 91.700 % in Jun 2018. This records a decrease from the previous number of 91.900 % for Mar 2018. Hong Kong Labour Force Participation Rate: Qtr: Male: Age 50 to 54 data is updated quarterly, averaging 91.400 % from Mar 1985 (Median) to Jun 2018, with 134 observations. The data reached an all-time high of 94.700 % in Jun 1988 and a record low of 88.500 % in Mar 2005. Hong Kong Labour Force Participation Rate: Qtr: Male: Age 50 to 54 data remains active status in CEIC and is reported by Census and Statistics Department. The data is categorized under Global Database’s Hong Kong – Table HK.G017: Labour Force Participation Rate: GHS: RPA.

Graph and download economic data for Infra-Annual Registered Unemployment and Job Vacancies: Total Economy: Registered Unemployment for China (LMUNRRTTCNQ156S) from Q1 2003 to Q3 2011 about China, unemployment, and rate.

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.