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MANUFACTURING EMPLOYMENT AND COMPENSATION IN CHINA - page 44 / 106

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On the basis of reported earnings data only, China’s 30 million employees of urban manufacturing units had average 2002 earnings of 11,152 yuan, or U.S.$1,347, at the official exchange rate. China’s manufacturing workers in TVE’s averaged 6,927 yuan, or U.S.$837, in reported annual earnings in 2002. (See tables 6 and 8.) After adjusting reported earnings to account for additional indirect and direct remuneration for employees, table 8 estimates that China’s urban manufacturing employees received an average of about U.S.$2,071 in annual labor compensation for 2002, while TVE manufacturing employees got approximately U.S.$904. It is important to note, however, that TVE employment is highly desirable to China’s rural workers because their TVE earnings are higher than the earnings they can derive from agriculture. 123

Monthly labor compensation in manufacturing

To calculate the monthly compensation of TVE manufacturing workers from their average annual labor compensation, it would be helpful to know whether all or even most of the reported 71 million TVE manufacturing employees work most of the year and what proportion are part-year or part-time workers. As noted earlier, it is likely that many unreported workers do not work year round. If the assumption is made that these 71 million reported workers represent year-round workers, then their average monthly total compensation was about U.S.$75. (See table 8.) Urban manufacturing employees are, generally speaking, year-round, full-time employees. Monthly urban manufacturing labor compensation was U.S.$173.

Annual hours worked in manufacturing

To calculate the hourly labor compensation of China’s manufacturing employees in 2002 would require data on the average number of hours actually worked per employee during that year. Some data have been published on China’s urban manufacturing employees’ average hours worked in 2002. Specifically, China’s NBS and Labor Ministry have been conducting a labor force survey for some years. Most results of this survey have not been published, but data on hours worked by urban manufacturing workers during 2 reference weeks of 2002 have been published. According to the survey, urban manufacturing employees in China actually worked an average of 44.86 hours during the 7-day period from May 9 to May 15, 2002, and 46.0 hours during the reference week of September 24- 30, 2002.124 Averaging those two figures results in the estimate that, during 2002, in the weeks when urban manufacturing employees actually worked at all, they averaged 45.4 hours of work per week.

The remaining problem is to estimate the average number of weeks actually worked by urban manufacturing employees in China during 2002. Because urban employees are supposed to receive a total of 10 days of statutory holidays per year, it is reasonable to assume that urban manufacturing employees get 2 weeks of public holidays per year. It is also reasonable to assume that urban manufacturing employees, on average, missed 1 week per year for some combination of illness, injury leave, and maternity leave and 1 week per year for personal leave plus work stoppages and downtime due to

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