Manufacturing Jobs Returning to the United States from China

Published on Author marybeth

Today for the first time ever, the wage gap between the United States and China is shrinking and fewer manufacturing jobs are being offshored to China.

The wages in the United States are only about 20% more than those in China. This shows that the gap in the pay level between the two countries is closing. Now only are the wages increasing in China, but also wages in the United States have dropped from where they once were.  The increases in the wages in China are due to inflation and new regulations that set the maximum number of temporary workers at a maximum of 20% of the total number of people employed.

Today in the United States, the average wages for entry level manufacturing jobs in the auto industry are $12-$14 per hour, compared to $7-$8 per hour in China. The executive of a temporary-staffing company, Jeffrey Joerres, states that he sees the closing of the wage gap as a process that has come full circle. This presents a fascinating reason for the United States to invest more in manufacturing.


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2 Responses to Manufacturing Jobs Returning to the United States from China

  1. As China’s economy continues to grow, wages for the labor force will only continue to grow as well. This will cause some interesting shifts on the global economy because much of the work that has been outsourced to China for cheaper costs will start to return back to the home country. China will eventually no longer be the most profitable region for the manufacturing industry because the cost of labor is what was driving that profitability. It will be interesting to see how trade laws are impacted by rising wages in China, because in order for trade to continue to grow, there needs to be incentives, such as lower transportation costs.

  2. It is good to see that the wage gap moving in favor of the US. In my opinion, the US needs to take advantage of every opportunity to invest in manufacturing opportunities. Jeffrey Joerres seeing the process as having coming full circle bodes well for the US and hopefully means other gaps will start to move back.