Friday, June 8, 2018

Global Hourly Labor Costs


US manufacturing wages average $21.39 per hour.

This is a reasonable wage for the US and we should be able to add manufacturing jobs back to the US. We should be able to expect to add high volume, automated manufacturing where the number of employees is low. We should also begin to shift advanced product design to the US to avoid intellectual property theft by other countries. This should include electronics and software development. I also expect to see more foreign car production plants in the US to handle US consumption.

We will probably continue to have manufacturing operations overseas that require lots of touch labor because of labor costs. We already know that labor costs are lower in China and Mexico and there are many other countries as well.

In 2018, hourly manufacturing market rate in China is $5.51, in Mexico is $4.45 and in Vietnam is $2.73. 

In 2017, hourly manufacturing market rates in euros in the EU included Bulgaria E4.90, Romania E6.30, Lithuania E8.00, Latvia E8.01, Hungary E9.10, Poland E9.40, Croatia E10.60, Slovakia E11.10, Czech Republic E11.30, Estonia E11.70, Malta E13.80, Portugal E14.10, Greece E14.50, Cyprus E16.00, Slovenia E17.00 and Spain E21.00.  All other EU countries are above E25.00.


Russia has a minimum wage
In 2018, the minimum wage in Russia is $1.35.

The Russian minimum wage was recently raised to E150 per month. In Moscow, the minimum wage is E278 per month. In St Petersburgh it is E250 per month

Russia also has subsistence pay for working age E196 per month, Kids E180 per month and Pensioners E150 per month. It is no longer Communist, but continues to be Socialist.

Companies don’t invest in Russia because they haven’t developed their legal system to become investor friendly. Russia relies on its oil economy and doesn’t have the capital to harvest its other vast natural resources.

Norb Leahy, Dunwoody GA Tea Party Leader


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