Editorial: Wages increase needs re-examination
- Source: Global Times
- [01:30 August 03 2009]
- Comments
The National Bureau of Statistics (NBS) recently stated that the average wage per capita for urban employees in China grew 12.9 percent to 14,638 yuan ($2,142) in the first half of this year, as compared with the same period last year. The figure immediately drew wide questioning from the public, with teachers, civil servants and workers all complaining that their salaries have not increased at all.
As the financial crisis continues, China’s foreign trade has plummeted, corporate profits have slumped and the job market has shrunk. Under such conditions, how could the average wage increase so greatly?
Authorities and departments at all levels in China are trying their best to guarantee economic growth despite the impact of the financial crisis. Obviously, a huge increase in average pay would serve this objective very well.
However, we cannot solely seek a statistical increase. In fact, the high average wage cited by the NBS is only enjoyed by a small group of people with privileges and advantages. The statistics don’t reveal China’s drastic income disparity among workers.
The NBS statistics show that the average wage per capita for financial industry employees in urban areas stood at 30,603 yuan ($4,478) in the first half, ranking first. Then followed employees in information, computer services and the software industry, and those in scientific research and technology services. Meanwhile, the lowest wages went to people who worked in sectors such as hotels and catering, construction and the environment.
The NBS statistics should have been based on a more scientific study of wages, one that would have been more trustworthy. The report should have listed wage increases in each relevant economic sector and according to employees’ jobs.
To give a full and true picture, the statistics should also cover much more people. According to the NBS, the statistics only covered about 120 million urban employees, excluding those 170 million people working in private companies, self-employed households and migrant workers.
These excluded workers, along with rural farmers, actually constitute the majority of the country’s workforce and contribute greatly to the nation’s development.
The NBS statistics should be calculated scientifically, to help truly display and solve the income distribution gap, even if a smaller wage increase is revealed.
This would show the urgency of increasing the income of the disadvantaged, which in turn would stimulate their consumption and help the country’s economy transition successfully.
