Study On How Labor Cost Affects The Labor-intensive Manufacturing Industry In Nanjing

Though the ratio of heavy chemistry industry is higher, labor-intensive manufacturing industry is still play an important role in the industry framework of Nanjing city, which is one of the most important manufacturing industry bases of our country. At present, it's known to all that the labor force cost is increasing, the labor-intensive manufacturing industry in Nanjing city has to face the pressure of the increasing labor force cost like in other coastal cities. At this background, it's meaningful to study how labor cost affects the labor-intensive manufacturing industry in Nanjing city. After analyzing the development condition and challengers of labor-intensive manufacturing industry in Nanjing city, the paper uses the chosen data of 119 labor-intensive manufacturing industry enterprises in Nanjing city to study it by demonstration analysis method.Firstly, the chosen data is used to study how the labor cost affects the cost and benefit of labor-intensive manufacturing industry enterprise. The conclusion is, it is effective to bring down the management cost by reduce the wage, but it will badly hurt worker's working passion and the management efficiency. Anymore, as to bring down labor cost, there's a larger space to raise labor cost, and which is good to enterprise to increase efficiency and its long-term development.Secondly, the relationship between labor cost and staff mobility is studied, which demonstrate that high wage is attractive to talent.Thirdly, by study the impact of labor cost on product exportation, FDI in labor-intensive manufacturing industry in Nanjing city, the paper found that, increasing labor cost does not the decisive factor of restraining product exportation, and FDI is not only affected by labor price, but co-determined by labor productivity, infrastructure, human resource, and scientific research level etc factors.Lastly, some special proposals of developing Nanjing labor-intensive manufacturing industry are put forward from the aspects of enterprise, government, industry.