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Electronics Production | January 27, 2006

China's wages on their way up

China will not be so cheap for manufacturing much longer. A Flextronics employee said the living situation in Shanghai is no longer that good.
"Living in Shanghai costs a lot more than living in my home town, so the company would have to pay higher wages to keep me here for longer," she says.

According to the article Flextronics has a high turnover of employees. The company has to replace one third of its workforce each year. The employees who are often moved in from other regions in China normally stays at the company for only three years.

"When they have made enough money, they will either take that money home to build a house, get married and return to farming or they will set up their own small businesses here in the city because it pays better”, the Head of the Population Institute at East China's Normal University, Professor Ding Jin Hong told BBC.

"If the factories want to keep this second group of people they will have to offer them more money", he adds.

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