1. CHINA’S LABOR FORCE LEEOZ AVNI, DORON KRAUS

2. CHINA’S ECONOMY The world’s second largest economy after the United States The largest manufacturing economy and exporter of goods in the world The second largest importer in the world Growth rates averaging 9.8% over the past 25 years, in comparison to the US which is averaged at 3.2%, and Israel at 1% Rank 87 th on per capita income basis, Monaco is 1 st, Israel 30 th The goal is to become fully developed nation by 2049

3. PROBLEM #1: SHRINKING WORKING FORCE China’s population almost doubled in growth during 1950-1980 Key working ages 15 to 64 China improved workforce productivity by transferring workers from agriculture to industrial sector 1979 China’s one-child policy

4. SHRINKING WORKING FORCE Declining mortality rates, life expectancy grow from 35years to 75years Declining fertility rates, dropped from 6 to 1.8 birth per woman. China’s demographic shift, 1950-2050

5. CHINA’S POPULATION SHIFT

6. PROBLEM #2 : CHINA’S CHEAP LABOR WORKING CONDITIONS Introduction China’s labor force count more than 800 million man & woman from whom 40% work in agriculture. CountryPopulation [millions] Num’ of people that work in agriculture [millions] Percentage of the population China135432023,6% USA3171.580.5% Israel7.50.070.9%

7. 1.Minimum monthly wages for a simple labor 2.Living conditions CountryHourly wage USA (by law)7.25 $ = 25.3 ₪ Israel (by law)23.1 ₪ China (by law??????)1.5 ₪

8. 3.Working for extra hours Chinese Working law allows to work for only 36 extra hours in a month. examples of violations: 4.Penalties for workers during working shifts. Factory that produce forAvg.monthly extra hours Apple120 ( 5 hours a day) Microsoft140 ( 6 hours a day)

9. CHANGES IN CHINA’S ATTITUDE FOR CHEAP LABOR 1.Permission to form unions: By law (and in theory): unions are allowed. In reality: workers don’t know they are allowed to join unions + the law is not forced. 2. Improving education system.

10. FOR CONCLUSION: China’s Cheap labor force China is an attractive country to manufacture in China’s economy is in growth rate Contribution to china’s export and foreign trade A demand in China for more cheap labor Vicious competition inside China worsens cheap labor conditions A demand out side and inside of China to better cheap labor conditions China’s cheap labor is not as cheap is it used to be China is not attractive country as it used to be…

11. REFERENCES “China’s labor force: what happens when china’s workers retire?”, China 360, KPMG global china practice, July 2013 “The disadvantages of China’s cheap labor in foreign trade”, JI ZUWEI, Shandong Institute of Business and Technology, P.R.China, Feb 2013 http://www.moital.gov.il/NR/exeres/2F5EA151-6FAE-4203-91E0-3780483722E5.htm http://www.economist.com/blogs/freeexchange/2012/01/chinas-labour-force http://www.tradingeconomics.com/china/gdp-growth-annual http://www.tradingeconomics.com/united-states/gdp-growth http://www.dol.gov/dol/topic/youthlabor/agerequirements.htm http://www.dol.gov/compliance/guide/childlbr.htm