Leong Sze Hian
I refer to the articles “Big gains in jobs, mostly for locals” (ST, Jan 30), “The optimism gets real: Employers’ caution giving way to confidence, as orders grow: Hudson survey” (Today, Jan 22), Raymond Koh Joo Guan’s letter “Pay a decent wage and no job will be “unwanted” (Todayonline, Jan 12), and media reports about the reply made by Manpower Minister Gan Kim Yong to MP Halimah Yacob in Parliament, saying that as of June last year, there were 87,400 resident employees on short term contracts of less than three months and they represented 5.7 per cent of the workforce.
Whilst it is good news that more jobs, and higher pay and bonus are expected, there are still many lower-wage workers.
Since 67.2 per cent of resident employees on short term contracts of less than three months earned below $1,000 a month, it means that 58,733 of them earned below $1,000.
As these workers on short term contracts are actually working full-time, why are there so many workers earning below $1,000?
8.4 per cent of total resident employees, or 156,200 people, are on part-time employment. Of these, 70.8 per cent – 110,590 people – earn below $1,000.
This makes a total of 169,323 short term contract workers and part-time workers earning below $1,000.
But this is only part of the picture. How many full-time workers and workers on short-term contract of three months or more are also earning below $1,000? How many low-wage and unemployed residents are there in total?
According to the Ministry of Manpower (MOM) Singapore Workforce 2009 report, there were 401,600 employed residents (full-time and part-time) with gross monthly income of $1,200 or below as of June 2009.
Considering that from 2009 onwards, those who work less than 35 hours a week, as compared to 30 hours previously, are classified as part-time workers, why is it that so many – 22 per cent of the resident workforce – earn so little?
We could attempt a rough estimate of the number of low-wage workers and unemployed in Singapore, by taking the sum of the average number of unemployed in 2008, discouraged unemployed who have given up looking for a job, and the unemployed who are participating in the Skills Programme for Upgrading and Resilience (SPUR).
This gives us a total of about 542,200 – 401,600 full-time/part-time + 87,000 unemployed + 11,100 discouraged unemployed + an estimated 42,500 SPUR unemployed who may be earning less than $1,200 or have no income.
There are also 328,000 older low-wage workers, aged 35 and above, who earned less than $1,500 and qualified for Workfare benefits for work done in 2008.
If we add to the above total of 542,200 those on Workfare benefits who earned between $1,200 to $1,500, how many low-wage and unemployed are there in total? 600,000 perhaps? Or even 700,000?
This could account for about 30 per cent of the resident workforce.
As to the net employment gain of 43,000 among locals and the drop of 4,200 in foreign employment for the whole of 2009, if we make an adjustment for the estimated 100,000 new permanent residents and citizens in a year, and new entrants to the workforce from school and national service, how much of the employment gain went to original citizens?
As long as there is no break-down of the data into Singaporeans and PRs, we do not know.
Singapore’s economic strategy focus of growing our gross domestic product and increasing the average per capita income may need to be reviewed, in the light of the fact that so many are earning so little whilst the cost of living is so high here.
Photo 1: Associate Press
Photo 2: Wilfred Wong
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Very good article! I would never have known the grim statistics otherwises.
Our first comment! You’re quick! :)
the easy supply of cheap worker is the major problem.
just look at the car wash business model, how may automatic car wash is still in services.
manual labour is cheap therefore what is the incentive to invest in car wash machines.
the technician to maintence the car wash machines is gone.
what is productivity, if the gorverment do not have a weather proof policy and regulation guildline on immigrations and F-worker.
Our current business model is not going to generate high pay salaries. Service industries tends to give the lowest pay and even much lower with foreign worker competing with local.
Geezus, that is a mind-boggling figure, 600,000 to 700,000 !
Alternative parties please take note. It is an awesome number of VOTERS for the coming GE.
So in essence Mah Bow Tan can sell his HDB flats at special promotion of “buy one get one free”
and yet those lesser mortals will find it not affordable !
how come PM Lee announced unemployment dropped from 6% to 3%, only weeks apart. Is he true or not? Or is it the election is coming?
It is dangerous to extrapolate numbers like this. The numbers look somewhat high and can probably be seriously challenged by MOM. It might be better to use simpler tables that cannot be refuted.
“This could account for about 30 per cent of the resident workforce.”
this is startling and certainly news.
time to ask ourselves why such a big, juicy, sensationalising scoop like this is still standing around. in the states, the republicans, or democrats, or maybe the greenpeace guys, would’ve made sure it hits fox news before nine p.m. eastern.
I want to cry.
I am a singaporean in singapore where singaporeans generally do not Question about the figures given to us.
Who Audits the Auditor?
how do we know if unemployment rates are correct? What was the basis and criteria used?
even if we know these, are we the ones who come up with the figures?
i think singaporeans in general dun give a shit about their society.
It is not singaporeans dun give a shit…
The problem is the PAP gov’t made it so…
by twisting/bending the ethical/correct laws bequeath to us by the british empire until it is almost un-recognizable…
now by removing/making pro-creation difficult…ask yourself how many societies lasted or became apathic when the citizens stop producing kids…because they know it is irresponsible to bring a child into a world where the child’s upbringing will be painful and unhappy or not much of a future…which rational parents will want to have children in singapore? I think only the rich [who can afford] and the PAP ministers themselves and their kakis can afford to pro-create…only problem i can see is in the end Singapore populated with folks such as these…and i dun think this class of so call human being or people will care for the less fortunate [many/some who became less fortunate because of the policies made by the PAP to arrive at the current status quo or maintain the status quo]…
It is so sad…
I do care for singapore and the peoples of singapore be it of any race, creed or religon…i believe many fellow singaporeans do too….but the actual power is in the hands of the few not no human people in the PAP gov’t….so how…i don’t know…i only know i will vote right…so all opposition parties must fight in all GRCs/individual wards….because i know this is the last chane all of us have…fight the good fight, if fail…then go to a country then treats you like a human being…and be all that you can be for that country that is true to you and your loved & cherished ones…
http://www.youtube.com/watch?v=ameZVIQa05c
Yes Strum, talking to many people , locals, they have more or less given up on this country and the government. People just cannot see themselves being irresponsible to have children and let them live a struggling life. And in the news today, raising of tuition fees for the polys and ITE, since when did the economy go up, its struggling to go forward. I think our leaders are in total self denial of the situation. We have to do the brave and correct thing now, vote this government out, we will struggle for a while but I think life will be better with a new government, Majullah Singapura, Majullah Rakyat! Well done TOC.
these numbers will increase if you do not exercise your vote wisely this time.
make your choice wisely for your immediate future and the future of your children and children children.
the past years have seen your Ministers salaries soaring through the roof beyond the sky while the average Singaporeans still suffer with depressed salaries and their jobs taken over by cheap foreigners.
the current government must be brought down to earth and walk with the very people that put their trust in them to lead towards equal progress for all but now it appears that only the government is really benifitting from the progress of our country while the rest of Singaporeans are still languishing and struggling to make ends meet