Labor Cost Continue Free Falling in GDP

According to Zhang Jianguo, Director of Contract Department of the All-China Federation of Trade Unions, the percentage of labor cost has been declining ever since it peaked in 1983 at 56.5%. In 22 years, the number dropped to 36.7% for 2005.

Through 1980s, a junior employee in a foreign company in Beijing earned Y8,000 ($2,000) per month. Thirty years later, a junior employee in a foreign company in Beijing earns Y5,000 ($1,200) per month.