Posted: November 14th, 2013 | Author: Rod Sherkin | Filed under: China, Labor | Tags: china, china labor cost, china labor shortage, china productivity, china robot | No Comments »
From 2005 to 2012, average labor costs in Zhejiang, a hub for private manufacturing enterprises, almost tripled from 14,847 yuan to 41,370 yuan ($6,800) a year, an annual increase of nearly 16 percent.
Zhejiang province is to invest 500 billion yuan ($82 billion) over the next five years to encourage manufacturers to adopt more robots to overcome the short supply and high cost of labor.
The program is underway and will help at least 5,000 companies a year, a source with the investment division of the Zhejiang Economic and Information Commission told China Daily, without giving details.
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Posted: October 11th, 2013 | Author: Rod Sherkin | Filed under: Best practices, Gem, Negotiating with Suppliers | Tags: negotiation | No Comments »
Suppliers often use wage increases to justify nudging up prices each year, usually 1 or 2%. And it’s hard to argue: – seems reasonable, and it’s less than inflation.
But wages aren’t the real issue – labor costs are.
And the reality is that the average cost of a ‘unit of labor‘ is about the same today as it was 5 years ago.
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Posted: September 6th, 2013 | Author: Rod Sherkin | Filed under: Labor | Tags: labor, labor cost, labor productivity, productivity, us labor | No Comments »
Unit labor costs were flat in the second quarter, less than the 1.4 percent rise the government had initially estimated. U.S. workers were more productive from April through June than previously estimated while labor costs were unchanged.
Productivity grew at an annual rate of 2.3 percent in the April-June quarter, up from an initial estimate of 0.9 percent growth, the Labor Department said Thursday.
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Posted: March 31st, 2013 | Author: Rod Sherkin | Filed under: China, Labor | Tags: china, china labor cost, labor, labor cost | No Comments »
U.S. companies operating in China cited rising labor costs as the biggest risk to their business in the country for the first time, the 2013 China Business Climate Survey Report by the American Chamber of Commerce in China, AmCham China, showed.
Among 325 businesses surveyed, 47 percent said rising labor costs were their biggest risk, just above the number that said slowing economic growth in China was the major concern, the 2013 China Business Climate Survey Report said. More than a quarter of respondents said they had been the victim of data theft.
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Posted: February 11th, 2013 | Author: Rod Sherkin | Filed under: Labor | Tags: labor, labor cost, productivity, us labor | No Comments »
Labor costs rose at a 4.5 percent rate in the fourth quarter 0f 2012, the fastest gain since the first quarter of 2012. However, for all of 2012, labor costs were up a modest 0.7 percent. That compared to a gain of 2 percent in 2011 and a decline of 1 percent in 2010.
Labor costs were rising more rapidly before the Great Recession, which triggered millions of layoffs and reduced workers’ bargaining power.
The main reason for the increase in Labor Costs was a fall in productivity. U.S. worker productivity shrank in the final three months of 2012 although the decline was caused by temporary factors.
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Posted: March 7th, 2012 | Author: Rod Sherkin | Filed under: Economic Indicators, Labor | Tags: labor, productivity | No Comments »
Labor costs increased at a 2.8 percent rate in the fourth quarter. That’s lower than the 3.9 percent rise in the third quarter, but much higher than the initial fourth-quarter estimate of 1.2%.
Growth in U.S. worker productivity slowed at the end of last year, while labor costs rose. Fewer gains in worker output suggests employers must add workers if they want to meet higher demand.
The Labor Department said Wednesday that productivity rose at an annual rate of 0.9 percent in the October-December quarter. While that’s a slight upward revision from last month’s preliminary estimate, it’s half the pace from the July-September quarter.
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Posted: November 3rd, 2011 | Author: Rod Sherkin | Filed under: Labor | Tags: labor | No Comments »
Labor costs dropped at an annual rate of 2.4 percent in the third quarter, the first decline since late 2010.
U.S. workers increased their productivity this summer by the largest amount in a year and half, and they cost their employers less. The trend is good for corporate profits but not necessarily for job growth.
The Labor Department says productivity rose at an annual rate of 3.1 percent in the July-September quarter after two straight quarterly declines. Labor costs dropped at an annual rate of 2.4 percent in the third quarter, the first decline since late 2010.
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Posted: June 21st, 2011 | Author: Rod Sherkin | Filed under: China, Labor | Tags: china, labor | No Comments »
“We’ve seen our wage costs in China go up nearly 50 percent in the last two years alone,” said Charles Hubbs of Guangzhou Fortunique, which is a medical supply company for some of the United States’ largest health care companies. “It’s harder to keep workers on now, and it’s more expensive to attract new ones. It’s gotten to the point where I’m actively looking for alternatives. I think I’ll be out of here entirely in a couple of years.”
Years ago, several U.S. manufacturers moved production plants to China in an effort to cut labor costs. However, the age of cheap labor in China is ending as annual wages for manufacturing workers continue to grow, and now, some of the larger plants in China are looking for a new home.
But where will plants go to next? Countries like India, Laos, Cambodia and Vietnam are a few options for cheap labor. Also, some companies like Wham-O, a toy company, are returning to the U.S. Last year, Wham-O moved 50 percent of its Frisbee and Hula Hoop production to the U.S. According to a study by the Boston Consulting Group (BCG), China’s average wage rate was 36 percent of the United States’ in 2000, and by the end of 2010, this “gap” shrunk to 48 percent. By 2015, BCG predicts it will be 69 percent.
via DailyTech – Cheap Labor in China Coming to an End.
Posted: June 21st, 2011 | Author: Rod Sherkin | Filed under: Labor | Tags: europe, labor | No Comments »
The annual increase in Eurozone labor costs accelerated sharply in 1Q to +2.6%, boosted by a pick-up in wage costs and especially employer payroll contributions, Eurostat said Monday.
Most analysts had expected a more moderate annual rise of 2% at most.
After bottoming out in the middle of last year, labor costs gains have now recouped over half the slowdown from the previous high of 3.5% in the spring of 2009, but they are still far below the pre-crisis peak of 4.3%.
Stronger labor cost increases in 1Q reflected both faster wage gains, up 2.3% on the year after +1.4% in 4Q, and a spike in non-wage costs, which include social security contributions and employment taxes, to a two-year high of 3.6% — double the rise in 4Q.
via Analysis:Eurozone Labor Costs Rose Faster Than Expected In 1Q | iMarketNews.com.
Posted: September 5th, 2010 | Author: Rod Sherkin | Filed under: Economic Indicators | No Comments »
Productivity in the spring fell by the largest amount in nearly four years while labor costs rose, signals that companies may have reached the limits of squeezing more work out of fewer workers.
Productivity dropped at an annual rate of 1.8 percent in the April–to–June quarter, double the 0.9 percent decline originally reported a month ago, the Labor Department said Thursday. Unit labor costs rose 1.1 percent, the biggest rise in labor costs since late 2008.
via Productivity falls while labor costs increase.