China Expected to Send More Skilled Workers Abroad

Strategic Insights -

The China International Contractors Association's annual review predicts that China will send more skilled workers abroad in the next few years due to the promotion of education and professional training at home. This shift is expected to result in an increase in the number of senior sailors, technicians, and consultants working abroad. Meanwhile, workers in labor-intensive sectors such as construction and textiles are likely to remain a significant proportion of the country's overseas workers.

Key Takeaways:

  • The China International Contractors Association expects an increase in the number of senior sailors, technicians, and consultants working abroad due to improved education and professional training in China.
  • Workers in labor-intensive sectors such as construction and textiles will still constitute a large proportion of China's overseas workers.
  • The earnings of Chinese workers who go abroad for jobs are expected to increase by 10% year-on-year in both 2006 and 2007.
  • Last year, Chinese workers earned a total of US$4.8 billion abroad, a 25% increase from 2004.
  • The value of contracts increased 21.2% year-on-year, to US$4.25 billion in 2005.
  • As of December 2005, 565,000 Chinese workers were employed in foreign markets, with over half of them working in Asia.
  • Chinese laborers working abroad primarily hold manufacturing or construction jobs, accounting for more than 60% of the total.
  • European companies paid out around US$180 million to Chinese workers in 2005, mainly due to the opening of the Russian market.
  • Poor management and lack of training were identified as major issues facing Chinese workers abroad.
  • The report recommends the Chinese government and industrial associations expedite legislation for the sector to strengthen management and clarify obligations and penalties.

Statistics:

  • Earnings of Chinese workers abroad: expected to increase by 10% year-on-year in 2006 and 2007.
  • Total earnings in 2005: US$4.8 billion, a 25% increase from 2004.
  • Value of contracts in 2005: US$4.25 billion, a 21.2% increase from the previous year.
  • Number of Chinese workers employed abroad as of December 2005: 565,000.
  • Proportion of workers in Asia: over half of the total.
  • Workers in manufacturing or construction jobs: over 60%.
  • European companies' payment to Chinese workers in 2005: around US$180 million.

Sources:

  • China International Contractors Association's annual review, cited in "Asia Pulse", April 6 (year not mentioned).
  • Xinhua International Centre (XIC).