Perspective on labor cost rising: double-edged sword brings dilemma

Xinhua Beijing, July 12 (reporter Zhangxiaosong, Xu Bo, wangmin) this year, with the eastern region of corporate pay increase and the central and western regions to raise the minimum wage standards as the symbol of rising labor costs "signal" constantly flashing. Through this new economic phenomenon, a series of problems lie before us-is China's economy moving out of the era of cheap labor? What are the opportunities and challenges involved in this important transformation?　　How to find a balance between "full employment" and "decent employment"? The "rising cost of labor" in an unsustainable era of cheap labor has been marked by higher wages, especially for migrant workers. "According to our monitoring, 2004 years later, the wage growth rate of migrant workers is more obvious, from the average monthly salary of six hundred or seven hundred yuan to the current 1500 yuan," said Moron, deputy director of the Labor Sciences Institute of Human Resources and social security. Shen Chenchen, vice dean of China's labor Relations school, argues that rising labor costs are not just a matter of remuneration, but also a lot of hidden costs.　　In order to meet the requirements of employees, enterprises in the education of staff, training and corporate culture construction and other aspects of the investment is also increasing.　　To analyze the causes of the rising labor costs, we must first look at the changes in China's labor market supply and demand relationship. Cai, director of the Institute of Population and Labor economics at the Chinese Academy of Social Sciences, last year predicted a serious shortage of labor structures in China this year.　　"Labor shortage" proves this. The survey of enterprise employment conducted by the ACFTU Research Institute found that the rural labor force in the East area has fallen rapidly since this year, and skilled workers are in short supply.　　The imbalance of labor supply and demand leads directly to the increase of labor cost in eastern coastal areas. Not long ago, Cai wrote that the growth of the working-age population in China had slowed significantly.　　At present, the amount of labor required by the city is mainly dependent on the rural transfer of labor, and in the late 2015, the number of working-age people who are transferred out of rural areas will not be enough to compensate the city's needs. "This is not a short-term, local phenomenon, but a long-term, inevitable trend."　　Zhang Libin, a researcher at the Labor Science Institute at the Ministry of Human Resources and social security, says that in the long run, labor costs have only just begun and there is still room for the future. China's economy has been in the era of cheap labour for years compared with fast-growing gross domestic product and corporate profits.　　From 2002 to 2009, China's gross domestic product increased by 10.13% annually, but the average annual growth of workers ' wages after deducting the price factor was 8.18%. "The current growth is a corrective to the previous low wage level. "Moron that," the increase in prices, especially the increase in food prices, resulting in the growth of people's living costs, so that the desire of workers to raise wages is increasing, at the same time, the continuous improvement of labor productivity makes it possible for enterprises to increase labor cost expenditure. "Rising labor costs also reflect the demands of a new generation of workers," he said. With the "generation" and "the Crowd" and "new generations of farmersMigrant workers are "on the job, eager to get higher wages and better benefits than their parents." Rising labor costs provide more intrinsic impetus to China's economic growth by increasing the "double-edged sword" of labor costs: raising wage income is beneficial to narrowing the gap between rich and poor, expanding consumption, stimulating domestic demand, reducing the over-reliance on low level exports and foreign investment, and increasing wages is "forcing" enterprises to actively adjust industrial structure,　　Enhance the ability of independent innovation, expand the value-added products. As the Wall Street Journal points out: "This shift is expected to accelerate the country's transition to a more consumer-driven economy dependent on its own citizens."　　However, it should not be overlooked that the rise in labour costs is a double-edged sword.　　The increase in wages will directly reduce the profit margins of the company, especially for those "production of 100 pairs of socks to make 1 dollar profit" of low-end manufacturing, but also a huge challenge.　　According to a recent survey published by the China Entrepreneur Survey system at the State Council's Development Research Center, nearly 80% business operators believe that rising labor costs are one of the biggest challenges facing future companies.　　The increase in labor costs has a more direct impact on China's export-oriented economy.　　A spokesman for the Ministry of Commerce, Yao Jian, said that although China's export growth has accelerated since this year, the rise in raw material prices and labor costs will constrain the international competitiveness of Chinese products and the annual export situation is not optimistic.　　According to Li Wenfeng, vice president of China Light Crafts import and export Chamber of Commerce, at present, India, Vietnam and other neighboring countries, labor costs have been lower than China, some foreign-funded enterprises began to transfer some production capacity in Southeast Asia and India. "There may be employment difficulties in some industries and the impact of this will need to be further assessed."　　"Moron said.　　In front of us is such a "dilemma" choice-to accelerate economic restructuring, narrowing the gap between the rich and the poor and boosting economic growth requires us to get out of the era of cheap labour, but too fast labor costs can weaken industry competitiveness and may lead to slower growth and fewer jobs. Seeking a balance between "full employment" and "decent employment" this year, the country's urban new employment has accelerated the trend of increase, while the urban registration rate has declined. "One liter and one drop" underlines the continued good employment situation in China.　　But China's employment situation is still grim in the short term. The Ministry of Human Resources and Social Security predicts that China's urban labor supply will exceed 24 million in 2010, but the economic development can provide only 12 million jobs, and the supply and demand gap is as high as 12 million.　　At the same time, there are more than 100 million agricultural surplus labor to be transferred.　　To achieve sustainable development, the Chinese economy must find a balance between "full employment" and "decent employment". "China will eventually come out of the era of cheap labor, but in the current grim employment situation, it also needs to adhere to the long-term development of labor-intensive industries, at the same time, strengthen scientific and technological innovation, establish independent brands, improve product attachmentAdd value, through the upgrading of traditional industries and the development of new industries to create more space for employment, improve the income of workers.　　"Zhang Libin said.　　Experts believe that the central government should continue to expand employment in the economic and social development priorities, adhere to the development of employment expansion strategy and more active employment policy, including: vigorously support the development of SMEs, and actively reduce the burden for enterprises, to encourage entrepreneurship as an important channel to expand employment, etc., and strive to achieve full employment.　　At the same time, in the face of the new situation of rising labor costs, government departments should take the advantage of the development of policies and measures to adjust the distribution of national income, gradually improve the proportion of income in the distribution of national income, improve the proportion of labor remuneration in the initial distribution, and make it adapt to the improvement of "For those small and medium-sized enterprises that have better prospects but are experiencing difficulties due to rising labour costs, local authorities should help them tide over this."　　"Zhang Libin said. Shen Chenchen suggested that enterprises, pay more attention to human capital investment, strengthen the education and training of employees, and through the construction of enterprise culture to meet the multi-level psychological needs of employees, help employees to integrate self-worth and enterprise development, to achieve joint construction, sharing, win, and promote the establishment of harmonious labor relations.