BEIJING, May 26 (Xinhuanet) -- According to the "2005 China's regional financial operation report" issued by the Central Bank on May 25, China's labor cost shows an uptrend and residents' savings deposits are increasing rapidly at the same time.

    Analysis shows that with the growing support for rural development and rising agricultural income, fewer people leave the countryside to find a job in economically developed regions, so that China's labor cost goes up. Migrant workers and technical workers are even in short supply in coastal areas such as the Pearl River Delta and the Yangtze River Delta. Enterprises there have to satisfy their demand for work force through pay rises.

    As the labor cost goes up, both urban and rural residents in China find their RMB savings deposits increasing rapidly. At the end of last year, the balance of RMB savings deposits exceeded 14 trillion RMB (US$1.75 trillion), an increase of 18%. The growth rate of savings deposits in 27 provinces overtook the GDP growth rate.


(Source: Chinanews)