Chinese workers will enjoy an average pay rise of 8 percent in 2016, according to the Korn Ferry Hay Group forecast.
“[D]espite China’s economic slowdown, coupled with plummeting stock markets and reduced exports, workers in the country are set to see an 8 percent salary increase in 2016 as employment rates continue to grow due to the increasing need for skilled workers and the sustained rise of the burgeoning middle class,” the report said.
The group also compared global salary increases taking into account the Economist Intelligence Unit’s inflation predictions for 2016. Topping the list of “real” wage increases are Lebanon (11.5 percent), Vietnam (7.3 percent) and China (6.3 percent).
State broadcaster CCTV reported that average salaries for 32 Chinese cities rose from 6,320 yuan (HK$7,458) to 6,700 yuan (HK$7,910) in Autumn 2015. Beijing workers boasted the highest average salary of 8,894 yuan, followed by Shanghai, Shenzhen and Hangzhou respectively.
“Asia continues to drive growth in wages globally as companies look set to increase wages,” Global Managing Director of Productised Services at Hay Group, Inc, Philip Spriet said. “In emerging economies, upskilling workers is crucial for companies to maintain competitive advantage, and those skilled employees can expect to see wages rise as talent shortages in certain regions drives salaries up.”
According to the forecast, Hong Kong workers are set to see a 4.5 percent pay rise and a 1.4 percent real wage increase in 2016.
Korn Ferry is a people and organisational advisory firm based in Los Angeles. The study drew data from Hay Group PayNet containing data from more than 20 million job holders around the world.