Aon Hewitt, a leading international HR consulting firm, released a new report on China's job market on Tuesday. It says that although the average salary of the Chinese is still rising at a fast pace this year, it has slowed down compared to 2011. The property sector saw the weakest salary growth, while the pharmaceutical and medical equipment industries rose the most.
China's salary growth rate posted a comfortable 9.1 percent in 2012, but slowed down from last year's 9.4 percent.
The major contributor to the drop in salary growth came from the real estate industry. After enjoying a boom of over 10 percent previously, it dropped to only 7.9 percent this year. Aon Hewitt says this was mainly due to the effect of the government's policy curbs, but also due to the transition from residential housing to building more commercial housing.
The biggest loser, geographically, is South China's city of Shenzhen, where salary growth in both manufacturing and non-manufacturing sectors declined, losing its pole position.
Especially in the manufacturing industry, Shenzhen's salary growth dropped from last year's 11.5 percent to 8.9 percent this year, ranking the last amogn first tier cities.
Guangzhou's salary growth surged the fastest in the manufacturing sector, followed by Shanghai, Beijing and Shenzhen.
Experts say manufacturers, especially foreign ones in coastal areas, have been the most impacted by the global economic slowdown and rising labour costs.
Laura Luo said, "Due to the rising labour costs, multinational companies have either chosen to move inland or leave China, for those of who don't want to lose their market, maybe it's time to transfer their core capabilities."
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