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.