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.

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

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.

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.

According to a survey conducted among U.S. enterprises in China in 2022, ** 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 ** and ** percent of companies respectively anticipating costs per employee rising by * percent or more.

Minimum Wages in China increased to 2690 CNY/Month in 2025 from 2590 CNY/Month in 2024. This dataset provides - China Minimum Wages- actual values, historical data, forecast, chart, statistics, economic calendar and news.

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

Historical chart and dataset showing China labor force participation rate by year from 1990 to 2024.

The labor force participation rate for males in China saw no significant changes in 2024 in comparison to the previous year 2023 and remained at around 71.11 percent. But still, the rate reached its lowest value of the observation period in 2024. Male labor force participation is the share of men over 15 years who are economically active. For example, all men providing labor in a specific period for the production of goods and services.Find more statistics on other topics about China with key insights such as female labor force participation rate.

In 2023, China's labor force amounted to approximately 772.2 million people. The labor force in China indicated a general decreasing trend in recent years. As both the size of the population in working age and the share of the population participating in the labor market are declining, this downward trend will most likely persist in the foreseeable future. A country’s labor force is defined as the total number of employable people and incorporates both the employed and the unemployed population. Population challenges for China One of the reasons for the shrinking labor force is the Chinese one-child policy, which had been in effect for nearly 40 years, until it was revoked in 2016. The controversial policy was intended to improve people’s living standards and optimize resource distribution through controlling the size of China’s expanding population. Nonetheless, the policy also led to negative impacts on the labor market, pension system and other societal aspects. Today, China is becoming an aging society. The increase of elderly people and the lack of young people will become a big challenge for China in this century. Employment in China Despite the slowing down of economic growth, China’s unemployment rate has sustained a relatively low rate. Complete production chains and a well-educated labor force make China’s labor market one of the most attractive in the world. Working conditions and salaries in China have also improved significantly over the past years. Due to China’s leading position in terms of talent in the technology industry, the country is now attracting investment from some of the world’s leading companies in the high-tech sector.

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 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.

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 *** U.S. dollars per hour, up from ** cents in 2002.

China is the largest labor force market in the world. China’s economic prosperity wouldn’t exist without the large number of people working in this country. With increasing living standards and growing inflation, the wages of employees in China are increasing as well. As of 2022, average wages in China increased to ******* yuan from ****** yuan in 2012. Wage gap between regions The wages vary in China depending on sector, position, gender and region like in any other country. Since China’s different regions have developed unequally, the wage gaps between people working in different regions can also be very large. This is a reason for no single minimum wage being set for the entire nation. The local governments set minimum wages based on local living standards. Considering the city tier, the wage standards are higher in cities with higher rankings. ******** and ******* have the highest minimum wage standards in China. Although the minimum wages in China have been increasing, the standards are still lower than in developed countries. Challenges of increasing labor costs Increasing wages also make the labor force market less attractive. Affected by increasing labor costs and the China-United States trade war, many companies are transferring their investment destinations, especially in the manufacturing sector. Local governments are also taking measures to ensure the living costs remain at a reasonable level to retain companies and employees. These measures include regulating the residential housing market more strictly.

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

Labor force participation rate, total (% of total population ages 15+) (modeled ILO estimate) in China was reported at 65.39 % in 2024, according to the World Bank collection of development indicators, compiled from officially recognized sources. China - Labor participation rate, total (% of total population ages 15+) - actual values, historical data, forecasts and projections were sourced from the World Bank on July of 2025.

Unemployment Rate in China remained unchanged at 5 percent in June. This dataset provides - China Unemployment Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

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.