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Economy

Wages on the rise but don't meet expectations

By Wang Wen (China Daily)
Updated: 2010-07-28 11:49
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An income survey report, based on 5,866 enterprises in Beijing, Shanghai and Guangzhou, released by Zhaopin.com in July, shows that the average wage rise was 10.1 percent so far this year, 1.9 percentage points higher than 2009.

The statistics from Zhaopin.com show that from 2006 to 2008 wages steadily increased, with the rate peaking at 13.8 percent in 2008. However, because of the financial crisis in 2009 the rate dropped to 8.2 percent, its lowest rate during the last five years.

"Although they are up again in 2010, and higher than 2007, the rate still hasn't reached the peak of 2008," said Zhao Lipeng, senior payment consultant with Zhaopin.com. "However, in Beijing the speed of the rises slowed, but wages still increased in 2009," he added.

Zhao thinks that the 2008 peak is likely to be reached again sometime next year, which means that many employees will remain disappointed this year.

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"Last year, many employees didn't get a pay rise because of the financial crisis and their expectation this year is as high as 21.8 percent," Zhao told METRO.

"I am still waiting for a rise this year and I hope it will be more than 30 percent," said Eric Hu, a 25-year-old, who works for a consulting company in Beijing.

The report shows that the top three industries for wage rises in Beijing are finance, IT and advertising. Labor-intensive industries, such as manufacturing and the service industry, have the lowest rises.

"The top three industries are all powerful," said Zhao. Adding, that although the finance industry struggled at first during the financial crisis, the industry had already started to pick up at the end of 2009.

The finance industry offers the highest average wages, according to the income report: employees' annual incomes can be 97,000 yuan, which is 48,556 yuan more than the average social wage in Beijing.

According to Forbes magazine, Beijing is ranked fourth among the world's up-and-coming financial centers.

Even the starting salary in the finance industry in Beijing can reach to 3,429 yuan per month, which is 400 yuan more than average income in the country.

It is also the top starting salary among industries in the city.

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