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Fri, 10 Oct, 2014 12:00:42 AM FTimes- Xinhua Report, Oct 10
The rising trend of the number of workers employed by Finnish companies in China began to reverse, due to the increasing labor costs there, said Finnish national broadcaster YLE on Thursday.
Following the path of the rapid globalization in the beginning of the 21st century, Finnish companies swarmed into the Chinese market. The major factor that attracted the Finnish enterprise was the low labor cost in China at that time.
According to Statistic Finland, the number of Chinese workers employed by Finnish companies increased from about 30,000 in 2006 to nearly 70,000 in 2011.
Data from Statistic Finland and Federation of Finnish Industries quoted by YLE showed that the average monthly wage was 2,560 euros (3,250 U.S. dollars) in Finnish industrial sectors, while the corresponding figure in China was only 114 euros in 2004.
However, the average monthly wage in Chinese industries has been surging since 2004, from 114 euros in 2004 up to 471 euros in 2012. The rising rate of wages was as high as over three times in China, while it was only 32 percent in Finland in the period.
The expansion of workers employed by Finnish companies in China stopped in 2012, as a result of the rise in labor costs in China. The number slightly decreased from 70,000 in 2011 to 69,000 in 2012.
Although the official statistics of Chinese workers employed by Finnish enterprises in 2013 and 2014 are not immediately available, it is certain that the downward trend has been accelerating in past year. Nokia is a prominent example, said YLE.
Nokia's decline was reflected in the sharp reduction in number of employees in China. Workers employed by Nokia in China dropped from 19,000 in the beginning of 2013 to only 8,000 in June of 2014.
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