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City’s cheap labour comes at a cost to some employers

Wages in Chengdu are significantly lower than in cities in eastern China. Although data show that the pay gap is narrowing, with China’s economy slowing it looks as though employers in the city will continue to struggle to attract talent away from higher paying jobs near the coast.

Three quarters of local employers who responded to a recent survey by FT Confidential Research (FTCR), a research company owned by the FT, described finding qualified staff as challenging, while 6.4 per cent said it was impossible.

The survey of 69 Chengdu companies showed the vast majority believed they were paying less than their coastal counterparts and about a third said they were paying at least 30 per cent less for skilled workers than companies in similar industries in eastern China.

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