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Income gap widens despite "average" income growth

编辑:chaxungu时间:2022-10-13 00:59:08分类:英语新闻

Chinanews, Beijing, July 9 – From 2000 to 2005, Chinese people's per capita output increased by 63.4%, exceeding related growth rate in India (26.9%) and ASEAN countries (15.5%). This shows that Chinese economic growth was efficient and sound. On the other hand, however, Chinese people's income did not grow accordingly, which indicates that people in China did not benefit from their high labor productivity. As people's income grew slowly, consumption remained sluggish for a long time, according to a recent report released by the International Labor Organization, the China Insurance News reported.The report's conclusion coincided with another report issued by the World Bank in February, which said that low consumption in China was caused by people's low income, not by their high savings.Even worse, although income gap in China further grows, such ever-increasing income gap is obscured by the apparent "average" income growth, which is largely driven by the wage increase in just a few industrial sectors. Related information shows that in China, electric power generation, telecommunications, finance, insurance, industrial sectors dealing with the supply of water, electricity and natural gas, and tobacco industry hire a total number of 8.33 million employees, which accounts for less than 8% of the national total. However, the total wages of workers earned in these industries account for 55% of the total wages for all employees in China.Here are a few disturbing facts regarding Chinese employees' wage structure.Firstly, in China, people's wage growth rate generally falls behind GDP growth rate, and is much lower than the fiscal revenues increasing rate. When the state becomes more and more affluent, individual people become poorer and poorer.Secondly, most of the wage increase goes to a few state-owned companies that have a monopoly power in their industries. When people's income in these industries increases substantially, the wage level of people in other industries remains overwhelming low. The apparent average wage increase thus obscures the fact that for many workers, their income has actually dropped tremendously year on year.Thirdly, in the mainland, there is a great gap between the income earned by corporate managers and that earned by grass roots workers. A related survey shows that in 27 major industrial sectors where most state-owned companies gather, the ratio of the high average income to the low average income had increased from 3.5-fold in 2002 to 6.4-fold in 2004. Furthermore, in many regions, employees' minimum wage level and the minimum social security level increase at a far lower rate than the average wage growth rate.