Labor Market and Salary report 2015/16

Beijing, Shanghai, Guangzhou, 15th October 2015 - The continued economic slowdown is starting to affect the labor market, resulting in a downward adjustment of wage growth at German companies operating in China. According to this year's survey analyzing China's labor market, German companies anticipate average wage increases of 7.1% in 2016 for their 1.1 million employees in China. Compared with 2015, this reflects a decrease of 1 percentage point. The survey was carried out between 17th August and 18th September 2015 by the German Chamber of Commerce in China among its member companies.

Continued Economic Slowdown Corresponds to Slowdown in Wage Increases

With generally higher than average wage levels, wage growth at German companies has typically been below the major national indicators for wage developments. The results of this year's poll with a total of 393 responses once again follow this trend and show an expected average wage rise of 7.1%, a slowdown of 1 percentage point compared to the actual wage increases of 8.1% in 2015. In line with slower economic growth and low inflation, wage increases have been revised downward accordingly across the major centers in the Yangtze River Delta, the Bohai Economic Rim and the Pearl River Delta where the majority of German companies are clustered. Wage adjustments are relatively homogenous across the different job categories. Increases for sales and engineering tend to be slightly higher than average.

Whether the expected increases of wage growth for 2016 will actually materialize, in part depends on how the overall economy develops over the coming months. Despite lower anticipated adjustments, wage increases will continue to be one of the main business challenges for German companies. Wage increases outpacing productivity is an issue for about one third of companies, but overall, German companies remain optimistic regarding future productivity gains.

High Levels of Additional Training Necessary

German companies heavily engaged in high-tech industries struggle to find and recruit qualified staff. Recruitment of technical sales and engineering positions are considered to be the most difficult. Two thirds of companies (67.2%) perceive their employees' technical and professional skills as 'good' but the majority (56.3%) also report that a high level of additional training is necessary in order to reach the required level of technical and professional skill, hinting at deficiencies in the labor market pool. The German Industry & Commerce Greater China (GIC) addresses this issue by engaging in and developing the dual vocational training system in China, in order to support companies in finding the staff they need.

Download the survey now

Please note that this is a condensed version of the survey. The full report including data collected from the wage survey among German companies in China is only available to members of the regional chapters of the German Chamber of Commerce in China. For more information please contact your regional chamber representative.

Presentation of the results of this year's Labor Market and Salary Report:

The results of this year's Labor Market and Salary Report will be presented by Mr. Max J. Zenglein, the Economic Analyst of the German Chamber of Commerce Greater China. Mr. Zenglein is an economist specializing on industrial relations and wage determination. He has been responsible for all previous GCC Wage and Salary Surveys starting in 2008 and draws from extensive knowledge and experience in this field. The presentations will take place in the following cities:

City

Date

Time

Location

Suzhou

13th October

10:45

Renaissance Hotel China

Taicang

13th October

17:45

Holiday Inn Taicang City
Centre

Changzhou

14th October

17:45

Changzhou Xinbei Sheraton

Shanghai

15th October

16:30

InterContinental Pudong

Dalian

20th October

18:00

Liebherr Dalian

Tianjin

22th October

07:30

Pan Pacific Hotel & Serviced
Suites

Beijing

22th October

17:00

Kempinski Hotel Beijing
Lufthansa Center

Guangzhou

26th October

09:30

GCC Guangzhou Office

Zhongshan

26th October

tbd

tbd

Shenzhen

27th October

08:30

GCC Shenzhen Office

Hong Kong

27th October

12:45

GIC/GCC Hong Kong Office

Shenyang

tbd

tbd

tbd

For more information and registration details please visit our homepage.

Contact

Contact

N. N

Economic Analyst China

+86-10-6539-6665
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