by Leong Sze Hian
I refer to the Ministry of Manpower’s (MOM) Singapore Workforce 2010 Report ,released on 30 November.
The real nominal median income for all employed residents rose by only 1.1% to $2,500 in 2010. After two consecutive years of negative real income growth in 2009 (- 1.8%) and 2008, six years (2001 to 2006) whereby median income hardly moved, and just one year of significant rise in 2007, the bottom line is that real wage growth for the last 10 years or so, is only about slightly over one per cent per annum.
With inflation running at 3.5% now, and the Minister of State for Trade and Industry’s (MTI) recent announcement in Parliament that inflation is expected to hit 4% by the end of this year, it is likely that workers may see a third consecutive year of negative real wage growth.
The real median monthly income from work of residents in full-time employment only increased by 1.8% to $2,710 in 2010.
Part-timers’ real median monthly income increased significantly by 11% to $700 in 2010.
Since the definition of a part-timer was changed from 2009, from working 30 to 35 hours a week, this increase in income may be due to some extent to more people not being able to get work of more than 35 hours a week.
If someone works seven hours a day, for five days a week, would you consider this worker as a part-timer?
Also, how does one survive on just $700 gross income (which includes the employee’s CPF contribution) a month in Singapore?
In this connection, from 1999 to 2010, the median gross monthly income of part-timers increased by only 1.4% per annum, from $600 in 1999 to $700 in 2010 (not adjusted for inflation yet). If we adjust for inflation, the increase per annum is near to zero.
There were 400,100 residents who earned up to $1,200 and below per month from work, forming 21% of the workforce. This was slightly lower than 401,600 or 22% a year ago.
Why does the MOM keep using the same $1,200 benchmark, year after year, for the last 10 years, without adjusting for inflation.
After adjusting the $1,200 for inflation, I estimate the percentage of residents earning less than $1,200 to be over 25%.
In 2001, 25.1% earned less than $1,200. So, I believe more people today earn less than $1,200 (inflation-adjusted), compared to 9 years ago.
If we include the non-seasonally 4.1% or 84,400 unemployed as of June, and the 10,900 discouraged unemployed, I estimate that over 30% of residents earn less than $1,200 (inflation-adjusted) or are unemployed.
Discouraged workers are persons outside of the labour force who were not looking for a job because they believed their job search would be in vain.
176,700 or 9.0% of employed residents in 2010 were part-timers, up from 156,200 or 8.4% in 2009. Around half or 49% of the part-timers in 2010 were willing and available to work additional hours (i.e. underemployed), down from 52% a year ago.
However, the number of underemployed residents rose from 80,500 or 4.3% of all employed residents to 86,600 or 4.4% over the year.
Once out of work, mature residents were more likely to stay unemployed for extended periods. Close to three in ten (28%) resident job seekers aged 40 & over had been looking for work for at least 25 weeks in June 2010, higher than two in ten (20%) for all job seekers.
Of all the categories of workers, Service & Sales workers had the highest unemployment rate of 5.5%. Even Cleaners, Labourers & Related workers had the third highest unemployment rate of 5.3%.
Aren’t these the jobs that we have been constantly told that Singaporeans don’t want? If so, then why is the unemployment rate so high for these workers?
Does this mean that even Cleaners and Labourers who lost their jobs, had difficulty getting re-employed in the same jobs?
To what extent has our liberal foreign worker policy contributed to this?
In my view, the above statistics clearly indicate that many Singaporeans may not be better off over the last decade or so.
I rest my case.
When it comes to statistics, I am reminded of the great English statesman, Benjamin Disraeli who said, “There are lies, damned lies and statistics.”
If you look at the way statistics have been manipulated to make everything look nice, you will understand the wisdom of those words spoken over a century ago. Let’s face it, I can manipulate any statistic that I want to as long as I change the definition. Haven’t lied – just changed the definition to suite myself.
Look at one of the government’s favourite topic – pay. When you want 10 cent a decade more, it’s called stroking inflation. When the minister needs $100,000 a second more, it’s called talent retention and attraction. Neither is wrong – it’s just a case of switching the definition to suite the circumstances……nough said……
Sze Hian,
is it possible for you to find out how many pct of the total income is earned by the top 10 or 20 or 30 pct of the people here which i believe,includes our Ministers,top civil servants besides corporate honchos and businessmen?
‘COST -CUTTING’ has but turned into ‘POCKETING’ by the rich and powerful here and everywhere.
small wonder,the world economy cannot seem to be able to get out of the doldrums.
it is time the world wakes up and search for wise leaders,not just “smart”(read shrewd) leaders of men.
“Why does the MOM keep using the same $1,200 benchmark, year after year, for the last 10 years, without adjusting for inflation.”
This is consistent with CPF Life, which is also not adjusted for inflation…
One often wonders that this government does things to keep up a warm and cozy facade.
This PAP government has failed us. Vote them out vote the opposition in.
walamak
numbers again!
omg…
end of the story – is the people/commoners surviving well?
is the people living happily?
can the people afford the basic needs? etc.
walamak
According to the MOM, 400,000 people are expected to qualify for Workfare Income Supplement which is a scheme to help low wage workers. This scheme is open to Singapore citizens (I.e. PRs excluded) aged 35 and above and earning no more than $1700 a month. The population of Singapore citizens stands at 3.2m. This gives you some idea of the proportion of low wage workers among Singapore citizens.
And tax payers are being made to subsidize companies that pay such low wages through the Workfare scheme. If $1700 is not enough to live on, how is it there are jobs that pay so little and how is it companies get away this? Businesses that can’t afford to pay decent wages should just die a natural death instead of being subsidized by tax payers. But the gahmen will have us believe that jobs will be lost if minimum wage is implemented. Try telling that to the many countries that have minimum wage.
one way to indirectly increase the pay of these lower income is the bonus – this is paid in terms of monthly pay. Thus, a person earning 20K a months gets 40K for 2 months bonus, while a worker with $1200 pay gets only $2400. I think the govt shld look into tweaking this, such as paying bonus with a higher fixed sum added, eg 1 month plus $5K, or 1.5 months +7K. This will at least offset some of the disparity.
I am not surprised Singaporean wages have deterroriated due to cheap influx of foreigners. Main stream medias are not reporting the truth except to spin whatever their masters requested. We should not allow PAP more room to breath again. Another influx of foreigners will be a complete genocide and by than Singapore is not worth defending for regardless of how “concerns” the ministers are.
Somehow this article contrasts with the headline news in ST today, titled “Employment levels at highest since 1991″. The MSM reporter stated that median wage has move closer to the govt. goal of $3100 by 2020; recall our FM presented this as a 30% increase, adjusted for inflation it will be $3600.
Not a guru with stats as LSH, but basic calculations will show that to get to $3100 over 10 years, the net increase must be 2.4-2.5% per year. Adjusted for inflation to $3600 mean a gross increase of 4.05% per year or an inflation of only 1.55% annually!!! Think, is it realistic that a $2.6m minister assumes inflation will be 1.55% when actual it will hit 4% this year? This is call ‘talented’ people in parliament, meh? The OFFICIAL target of $3600/$3100 would means just sufficient to keep pace with inflation, maybe even less. So, the next 10 years, Singaporeans are just gonna find things getting more and more expensive, with official endorsement of a stagnant median wage, instead of a flowery “30%” increase. WE ALREADY HAD 0 YEARS STAGNATION, WANT ANOTHER 10 YEARS?
Want to smoke Singaporeans also cannot smoke properly. Also, the ST reporter is so F****** lazy as to not even check the figures he is reporting. Just parroting garhem press releases, which a 10-year-old can also do.
An aside, it would be really nice if someone or TOC can do an article on the pay rise of our MIW over the past 10 years. I believe the last 5-8 years were the most expensive for taxpayers. Since ministers are public servants, their pay progression should be made freely available to the public. Appreciate someone could point to where such data is available, not Wikileak style.
my monthLEE adhoc incomes is somewhere near or below $1000/month..lucky i don’t smoked nor womanize in geylard…
to me is the best..what else can 1 seek?
I wish the day will come when we have enough opposition in Parliament to push for a Freedom of Information Act and amend the Official Secrets Act to only protect information which poses a security threat to the country. The question all of us must ask is ,Why is ruling party so afraid to reveal basic information like cost of building flats, the accounts of SWFs, politicans assest, statistics of workers and population, expenditure, purchases and travel expenses? Is there a need to protect such information. If there has been no wrongdoing, what’s the purpose of all that hiding? Pray tell me..
ZH,
What will be our real purchasing power now vs 10 to 20 years ago. I think this will be very interesting.
Errata: “….WE ALREADY HAD 0 YEARS STAGNATION, WANT ANOTHER 10 YEARS?…”
Should be 10 years of stagnation, not zero!!
10 Years of Stagnation?!
Zero Progress over the past 10 years?!
This is serious and something must be done. I see revolution as the only option now.
Singaporeans’ don’t enjoy the increase in wages as our GDP increase….only a certain group get to benefit
And wage has stagnant, while cost of living has rise in a sky rocket manner. well done
As usual, the lap dog local newspapers trying to brainwash people into believing that PAP’s policies worked. Bullshit
do some simple calculations.
new jobs created this year = number employed this year – number employed last year
new number of residents in singapore = residents this year – residents last year = mostly residents imported from other countries.
this is because real singaporeans give birth and die out at similar rates.
notice that the number of jobs created this year is awfully similar to the number of new residents statuses issued to foreigners.
notice also that we claim to import only the more useful foreigners. therefore they tend to earn quite some salary. therefore too, they may contribute to the rise in median income.
so did median income rise from importing residents?
akan datang – all this is national secret, probably, and you can only read it in wikileaks.
i just got retrenched, for so many years, no increment. i did not get any adjustment this year also.
how how how? jobs all going to FTs…
Leong Sze Hian is a self satisfied man with full masturbation in progress. 24 hrs talk cock.
Is $1,200 per month the minimum amount needed for subsistence level of living in Singapore?
Is the subsistence level of living also known as poverty line in many countries?
Resident workforce included both Singaporeans and PRs. In a country where it is possible for foreigners to obtain PR after working 6 months, these labour statistics are meaningless. Over analysing what is a meaningless statistics itself is futile. Writers like Mr Leong should push for a Singaporean-only data or risk making inconclusive remarks.
@Dolphin: We don’t have access to the full list of statistics, so that’s impossible. The writer’s tried hard with what little he has so far. I can’t comment on the accuracy of the analysis, I’m not too informed of such things, and there are too many variables to consider anyway.
Of course, if anyone happens to know alternative, accurate sources of information, that’d be great (:
@Christina Wong: ???
@the rest: I don’t mean to offend anyone, but looking at some commenters’ reactions, I think they’re a bit overexcited, calling for revolution and all :P I suspect it’s indicative of the inability to form a coherent and viable opposition to the Government, because the hysteria exists not only among the parties, but also the people voting against the Government…
I personally would still cast my vote for the PAP (if I could vote -.-), but I’d really want someone to come up with a concrete opposition manifesto. I might try it myself for fun.
@concerned citizen: I’m not sure where they got their $1200 benchmark from, it certainly depends on how many dependents are there in your house, and other factors…
but if you want a general standard, economists do calculate a ‘minimum standard of living’ based on the costs of certain quantities of basic goods in the country. I don’t know where to find things like that though…
Someone working 35h/week is classified a part-timer by the pap? This is indeed bollocks! In other countries, if you work 25h or more, you are a full timer. If you work 20h or less, you are a part timer.
Isn’t this a trick to mislead everybody? They love to bastardize words and its meanings.
is an MP a part-timer as well? did MOM also include them in their data?
@exuviate
You don’t need a rocket scientist to figure out if $1200 is or is not sufficient for the std of living in S’pore. Just work from the basic necessities like food, transport, housing, utilities, etc. and one can see if that is the poverty line for a ‘first world city’. Go even further, for a median household, assuming both parents are healthy and working for median $2500 salary. Housing loan, maid, care for aging parents, 2.1 kids schooling, public transport (no car), CPF, TV license, etc…, you mean still cannot work out a min. wage for your min. std of living?? Oh, I forgot, one minister did mentioned that if a family has a TV set (broken, B/W, etc.), then it is a luxury. Whether to eat in hawker center, foodcourt or restuarant (or free delivery aka MCYS). Also, need 56 man years to work out our reserves for President OTC, no wonder cannot work out a min. wage level for a city state. Many countries (with larger economies and populations) already have done it but of course they have more than 56 years of history, right? Maybe they also use computers, and not fingers for doing the sums.
@That is a joke
That is no joke as our labor policies are extremely biased for employers. Part-timers do not enjoy the full benefits so it is cheaper, faster to hire and fire them. In recent years, I see more and more companies giving only the recommended 7 days off for employees. Even exec. and managerial levels have their leaves reduced or ‘restructured’. As usual, NTUC or MOM is plain sotong on such matters, as long as GDP goes up. I don’t know if you other guys have noticed such things.
@mice is nice
Pls lah, even attending parliament sittings are NOT mandatory. They like suka-suka want or don’t want to attend. Some even sleep through even though their faces are there. You tell us if our MPs are part-timing or not.
My company just fired an employee for AWOL too many times (yes, that person was a FW/FT). Why can’t we, as employers of our MPs, do that also?
theforgottongeneration, 12 December 2010
i think our State Reserves during President Ong’s time need 56 man years. now maybe a few weeks enough cos maybe the reserves not much left….
pity most people (me included) not working for S’pore Pte Ltd. even most rank & file employees from that company enjoy iron ricebowl. just quiet quiet play it safe at work, low profile can already. they got min wage wan hor, &they are not so open to market forces of suply-&-demand. cos some they control de…
@theforgottengeneration:
it’s obvious $1200 isn’t enough lol. but i was just making a technical point, that’s all, cos he/she was wondering where they got the 1.2k benchmark from.
i’m wondering too. it seems rather retarded, don’t you think? tv a luxury? perhaps, i guess, if you compare to destitute citizens in china. but even if it is a luxury people should still be allowed to have it right? i mean, are we condemned to staying destitute forever or can we be allowed the licence for at least some progress…