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Urban workers: Salaries sliding

By Wang Ying (China Daily)
Updated: 2009-10-29 08:12

SHANGHAI: The government may be convinced that urban residents have more money in their pockets this year but many people in China's big cities disagree.

In a survey conducted by Huang Yong, a researcher with Horizon Research Consultancy Group, almost 80 percent of urban residents said their disposable income did not increase in the first half of 2009.

Related readings:  More job losses may surface for urban workers  Chinese urban workers' salary up 18%  Urban workers' per capita salary up 18% in 1H  Newly employed in urban areas hit 8.51m in first nine months

The survey appeared to contradict government figures that said the average disposable income had gone up by 11.1 percent.

Some 3,295 urban residents aged between 24 and 45 were polled. The respondents came from 10 major cities, including Beijing, Shanghai, Guangzhou, Harbin and Shenzhen.

Some netizens even went as far as posting their income statements online and many claimed their salaries had actually shrunk recently as a result of the global financial crisis.

The survey found the incomes of almost 85 percent of respondents did not change significantly in the first five months of the year. And about 30 percent of respondents said their income had actually declined during the period. That compared to 27 percent last year who said their incomes had gone down.

"The result is more representative as it is based on diversified respondents," said Qin Yan, a consultant who analyzed the information.

"Usually, we will have a 20 to 30 percent pay raise every year, but this year is exceptional. What makes it worse is the fact that we have seen a distinct rise in the price of commodities."

Xu Hao, a junior employee with a US-based multinational company said salaries seemed to be buying less these days.

"Prices are going up, but my salary remains unchanged," said Xu. "My standard of living is lower than before."

The National Bureau of Statistics (NBS) explained the disparity, pointing out that the government figures released earlier did not include some privately-owned enterprises, where some employees have seen pay cuts.

Statistics show that the average income among workers within privately-owned enterprises is only about 58.4 percent of the urban average.

During a recent media briefing, NBS officials said they plan to conduct a survey later this year of salaries paid by privately-owned enterprises.

Wang Lingyi, a researcher with the Shanghai Academy of Social Sciences, told China Daily that privately-owned enterprises now account for a major portion of the jobs in China. "They must be included in any survey on salaries," Wang said.