Summary of Key Points
In 2025, the national average wage continued to rise, but there is a discrepancy between individual perceptions and statistical data. The key changes include:
- Manufacturing, especially advanced manufacturing, has become the sector with the fastest wage growth, attracting many highly educated individuals.
- Wages in non-private entities are significantly higher than those in private entities due to the statistical inclusion of government agencies and state-owned enterprises, which offer higher salaries.
- Different regions are reshaping their wage structures based on their local advantageous industries. For example, cities like Beijing, Shanghai, Guangzhou, Jiangsu, and Zhejiang rely on advanced manufacturing and services; Ningxia relies on its resources; Chongqing on the digital economy; and Hainan on its free trade port.
- The average wage is more indicative of industrial structure and economic trends than of individual actual income, as it can be inflated by high-income groups and does not include flexible workers.
1. Why Has Manufacturing Suddenly Become a “Dark Horse” for Wage Growth?
In the past, manufacturing might have been associated with assembly line workers, but now it is transforming into a sector with high skills and added value, resulting in faster wage growth than many other industries.
- For instance, in Guangdong, manufacturing wages increased by 9.4% year-on-year in 2025. Nationwide, the wage growth rate for non-private manufacturing entities (5.2%) was 0.9 percentage points higher than the overall average, and for private entities (6.4%), it was 3.4 percentage points higher.
- The reasons are simple:
- Industrial upgrading requires highly skilled workers: Advanced manufacturing sectors such as new energy vehicles, intelligent robots, and integrated circuits need researchers, algorithm engineers, and industrial software engineers, who command high salaries and are in high demand.
- Young people are more inclined to work in manufacturing: The monthly income of the class of 2024 graduates entering the manufacturing sector is 6,755 yuan, a 25% increase from five years ago, and this salary advantage has been growing for three consecutive years. Data from Qiancheng Wuyou shows that intelligent manufacturing will account for the largest share of job listings (14.88%) in 2026, with the demand for highly educated positions in manufacturing expected to rise from 28% to 57% over the next decade.
- It can be said that traditional manufacturing is becoming a “technology-intensive” industry, driving overall wage increases through skilled labor.
2. Why Are Wages in Non-private Entities Nearly 60,000 Yuan Higher than Those in Private Entities? Is That a Sign of Weakness in Private Enterprises?
Not necessarily. Taking Guangdong as an example, the average wage in non-private entities is 143,000 yuan, while in private entities, it is only 84,000 yuan—a difference of nearly 60,000 yuan. The reason lies in the statistical scope:
- Non-private entities include government agencies and public institutions (such as civil servants and teachers), state-owned enterprises, research institutes, and large listed companies, which have stable salary structures and a high density of talented individuals (e.g., senior executives in financial state-owned enterprises and researchers at research institutes).
- Private entities are mostly small and medium-sized businesses, with most positions for ordinary employees, resulting in lower salaries.
- Therefore, the gap is not about the superiority of private versus non-private enterprises but rather the difference in salary structures between large institutions and small and medium-sized companies.
3. Which Regions Have Higher Wages? Advantaged Industries Are Reshaping the Wage Map
The regions with the highest average wages are still Beijing, Shanghai, Guangzhou, Jiangsu, and Zhejiang (the top tier), thanks to their headquarters economies (e.g., central enterprise headquarters in Beijing), modern services (e.g., finance in Shanghai), and advanced manufacturing (e.g., new energy vehicles in Guangdong). However, some less well-known regions are catching up quickly:
- Ningxia: The mining industry has wages of 235,000 yuan, due to its resource-based economy.
- Chongqing: The information transmission industry’s wages have surpassed those in the finance sector for the first time, driven by the digital economy and industrial upgrading.
- Hainan: The agriculture, forestry, animal husbandry, fishery, and mining industries are growing rapidly, thanks to the free trade port policy (which has boosted key parks and major projects).
- These regions have found their advantageous industries and created more high-paying jobs, thereby increasing overall wages.
4. Why Does the Average Wage Differ from What We Feel? And What Is Its Real Use?
Many people feel that their wages haven’t increased, even though the average wage has risen. There are three main reasons for this:
1. Statistical methodology: The average wage includes pre-tax income, such as bonuses, performance-based payments, social security contributions, and housing funds, which are not directly received by individuals.
2. Inflation caused by high-income groups: For example, if a company has one boss with an annual salary of 1 million yuan and nine employees with annual salaries of 100,000 yuan each, the average wage would be 190,000 yuan, but 90% of the employees earn less than this figure.
3. Incomplete statistical coverage: The calculation only includes employed individuals in urban areas and does not include self-employed individuals, delivery workers, or ride-hailing drivers.
So, is the average wage still useful? Yes! It provides insights into industrial structure and economic trends. For example, rapid wage growth in manufacturing indicates the development of advanced industries, and rising wages in a region suggest that its advantageous industries are creating high-quality jobs.
For cities, it is more important to focus on which industries can offer high-paying positions that ordinary workers can access, so everyone can benefit from industrial upgrading.
Conclusion
The increase in the average wage reflects China’s industrial transformation—manufacturing is shifting from labor-intensive to technology-intensive activities, and regions are competing for high-paying jobs through their advantageous industries. However, income inequality still exists, and individuals’ actual incomes should be considered based on the median rather than the average. Instead of worrying about whether one’s industry is holding back progress, it is more crucial to focus on whether the industry is moving towards higher value addition, as this is key to wage growth.