July 2015 – In Praise of China

Monthly Archives: July 2015

Labor Relations in China

What are Labor Relations in China Like?

Andrew Batson’s Excellent Blog Provides a Glimpse:

Finally, China starts to tackle the high cost of hiring

There was a lot of news out of China last week–stock markets tanking, interest rates being cut, etc–so it’s understandable that some other interesting developments slipped through with little notice. This one is worth highlighting as I think it may well mark the beginning of an important longer-term shift in China’s labor market and policies: the State Council lowered employers’ required contributions to two social insurance programs, injury and maternity insurance, a move it said would save firms 27 billion renminbi a year (see the China Labour Bulletin for an English-language summary). Yes, I know this sounds boring and technical, so why is it important? Because it starts to address one of the biggest but least-known issues in China’s job market: the very high costs employers face to hire workers.

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