Wake Up call for Canada. Wages in Mexico now lower than those in China, Indonesia, the Philippines, Thailand and South Korea.

English: A North American Free Trade Agreement...

English: A North American Free Trade Agreement (NAFTA) Logo. Español: Logotipo del Tratado de Libre Comercio de América del Norte (TLCAN). Français : Logo de Accord de libre-échange nord-américain (ALENA). (Photo credit: Wikipedia)

While China’s exports have grown, many have lost sight of  Canada’s other Neighbor. With the Free Trade agreement Goods can flow from Mexico into the US and into Canada. A lot of new US Production has moved to Mexico.

Now it seems that labour costs in Mexico are lower than in China. In 2010 the average wage in China was under $2.00 per hour. I would suspect that it is now still under $3.00 per hour. Wages in China are rising due to worker shortages.

A new report published by Bank of America Merrill Lynch claims that Mexican wages are now lower than Chinese wages. The disparity should continue to increase. China’s labour shortages are the driver to increasing wages in China.

English: (The Depression) The Single Men's Une...

English: (The Depression) The Single Men’s Unemployed Association parading to Bathurst Street United Church. Toronto, Canada Français : (La Dépression) Membres de la Single Men’s Unemployed Association se dirigeant vers l’Église unie de la rue Bathurst. Toronto, Canada. (Photo credit: Wikipedia)

This does not bode well for the next generation here in Canada. Like it or not, the next generation (generation lost?) will have to compete with Mexican labour costs. The last century was one of Industrialization in Canada and the US. This new century seems to be bringing the opposite – deindustrialization.

Reuters has posted a news article about the Bank of America Merrill Lynch report on Mexican Wages. You can view that article by clicking on the following link: Mexican Wages are now lower than in China.

The Mexico Representation site has much more info about the Wage benefits of moving production to Mexico. A great resource which you can view by clicking on the following link: Mexico’s Manufacturing Base Rebounds.

Today’s generation in Canada earns more working at a Fast Food Restaurant, than Mexican or Chinese, skilled Production workers. Why would any CEO open production in Canada, Especially when Mexico can compete with China’s low wages (likely less than $3 per hour)?

The age of Middle Class prosperity will I suspect, soon become a fond memory. A generation ago, people could get jobs pumping gasoline at Gas Stations.  Those jobs are long gone. Production jobs in Canada may, in the not so distant future, also become a fond memory.

Can a Canadian family survive, when the wage earners make less than $3 per hour????