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Average Salaries of Urban Employees Increase Steadily in 2017

Submit Time:13-06-2018 | Zoom In | Zoom Out

Author: | Source:National Bureau of Statistics

Abstract:

The National Bureau of Statistics released today the main data of average salaries in 2017. Meng Canwen, Chief Statistician of the Population and Employment Division of the National Bureau of Statistics, interpreted the data. 

In 2017, the supply-side structural reform advanced further, new drivers of economic development grew faster, and the production and business environment for enterprises improved significantly, leading to a constant and steady increase in the average salaries of urban employees. The average annual salary of employees in urban non-private units was RMB 74,318, an increase of 10.0% over the previous year; the growth rate was 1.1 percentage points higher than that of the previous year, and the real growth rate was 8.2% in real terms. The average annual salary of employees in urban private units was RMB 45,761, an increase of 6.8% over the previous year; the growth rate was 1.4 percentage points lower than that of the previous year, and the real growth rate was 5.0% in real terms. 

1. Higher salary increase in enterprises is the main driving force for average salary growth 

Enterprises are an important part of urban units. In particular, the vast majority of private units are enterprises. Changes in enterprise salaries have an important impact on the average salary changes in urban units. In 2017, the average salary in urban non-private units increased by 10.0%, to which enterprises, public institutions, government units, and other units contributed 5.5, 2.7, 1.6, and 0.2 percentage points, respectively. Specifically, the contribution rate of enterprises reached 55.1%, up 1.5 percentage points over the previous year. The contribution rates of public institutions and government units were 27.1% and 16.4% respectively, down 2.5 percentage points and up 0.2 percentage point over the previous year, respectively, due to the weakened influence of policy-related capital increase. The contribution rate of other units was 1.4%, up 0.8 percentage point over the previous year. Thus, higher salary increase in enterprises was the main driving force for average salary growth. 

The substantial increase in economic benefits of enterprises strongly supported salary growth. In 2017, profits of industrial enterprises above designated size increased by 21.0% from the previous year, up 12.5 percentage points over the previous year. Among them, profits of the mining industry changed from a decrease of 27.5% in 2016 to an increase of 2.6 times in 2017. Profits of the manufacturing industry increased by 18.2% in 2017, up 5.9 percentage points over the previous year. As a result, in 2017, the average salaries in the mining industry and the manufacturing industry increased rapidly by 14.8% and 8.4%, respectively, up 12.9 and 0.9 percentage points over the previous year, respectively. 

2. The supply-side structural reform drives enterprises to reduce costs and increase benefits, leading to faster growth in salaries 

As the supply-side structural reform continues to advance and the transition of old drivers of growth to new ones accelerates, salary growth in relevant industries has changed significantly. For example, in urban non-private units, the increase in salaries in capacity-removing industries greatly exceeded the national average level. As cutting coal and steel overcapacity improved the supply and demand relations, the profits of the two industries increased by 2.9 times and 1.8 times in 2017 over the previous year, respectively. Many enterprises not only paid performance bonuses of the year, but also repaid salaries and bonuses owed in the previous year. In 2017, the average salaries in the coal mining and washing industry and the ferrous metal smelting and rolling industry increased by 16.3% and 15.7%, respectively, and their growth rates were 16.1 and 8.3 percentage points higher than those in the previous year, 6.3 and 5.7 percentage points higher than the national average level, respectively. In 2017, the country continued to increase its investment in weak industries. The investment in the ecological protection and environmental governance industry continued to grow by 23.9% on the basis of the rapid growth in the previous year, which led to the development of the industry. The average salary in this industry also increased significantly by 14.6%, an increase of 6.6 percentage points over the previous year, which was 4.6 percentage points higher than the national average level. 

3. Faster growth of new drivers leads to salary increase in related industries 

The faster growth of new drivers promoted the upgrading of the industrial structure. In 2017, the growth rate of modern emerging service industries represented by the Internet and related services was significantly faster than that of traditional service industries, and the salary increase in relevant industries also reflected changes in this pattern. In urban non-private units, the average salaries in information transmission, software, and information technology service industries continued to rank top. The average salaries in the Internet and related service industries increased by 13.0%, an increase of 4.9 percentage points over the previous year, which was 3 percentage points higher than the national average salary increase. In urban private units, the average salaries in information transmission, software, and information technology service industries increased by 10.8%, an increase of 0.6% over the previous year, which was 4 percentage points higher than the increase of average salaries in all urban private units. In urban non-private units, the average salaries in scientific research and technology service industries rose by 11.6%, an increase of 3.5 percentage points over the previous year, which was 1.6 percentage points higher than the national average salary increase. The growth rates of salaries in all major industries under the sector were higher than the national average salary increase; among them, the average salary in the research and experimental development industry increased by 11.8%, which was basically the same as that of the previous year; the average salaries in the professional technology service industry and the technology promotion and application service industry increased by 11.0% and 13.6%, respectively, an increase of 4.5 and 3.6 percentage points over the previous year. The salary growth rates in the three industries were 1.8, 1.0 and 3.6 percentage points higher than the national average salary increase, respectively. 

The rapid development of well-being industries such as culture, sports, health, and old-age care drove the rapid growth of average salaries in related industries. In urban non-private units, the average salary in the cultural and art industry increased by 10.7% in 2017, which was 0.7 percentage point higher than the national average level. The average salary in the sports industry increased by 22.3%, and it accomplished the fastest average salary growth among the major industries of the country, as evidenced by over 22% increase in the average salary for three consecutive years. The average salaries in the health and social work industries increased by 12.1% and 14.6%, respectively, an increase of 0.5 and 1.1 percentage points over the previous year, which were 2.1 and 4.6 percentage points higher than the national average salary increase, respectively. 


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