Workers expect bigger pay rise next year
According to the Straits Times news report “Bigger pay rise expected next year” (Dec 20) – “Workers could enjoy a bigger pay rise next year as demand for labour remains high amid a tight supply of foreign manpower.
So many stories about pay expected to increase?
They project wages to go up by 3 per cent to 5 per cent on average across a range of industries, with some, such as health care and hotels, outperforming others. With inflation expected to be around 2 per cent, real wage growth could be around 1 per cent to 3 per cent.” – Don’t you find it irritating that our “150th press freedom ranking” media keeps coming up with stories that wages are expected to rise because of the tightening of foreign labour, when the reality is that real wage increase has been negative.
Real pay rise was actually negative
“This would be an improvement on this year’s poor showing – real median income growth was just 0.4 per cent from last June to this June, including employer CPF contributions, according to preliminary Manpower Ministry data” – Actually, real income growth (excluding employer CPF contribution) for the last 12 months to June was negative at -0.6%.
Unemployment rate increased
“With the supply of workers from overseas remaining tight, more demand for labour next year means an upward push for wages” – Don’t you find it very strange that despite the tightening of foreign labour and a tight labour market – the unemployment rate has gone up.
Actually, the Straits Times did something “very strange” in the news report “33,400 jobs created even as layoffs rose to 3,500 in 3rd quarter” (Dec 15) which said “Overall, the seasonally adjusted unemployment rate was 2 per cent in September. It has remained unchanged since March this year.
Using different periods to compare unemployment rate change?
For citizens, the unemployment rate was 2.9 per cent and for residents, 2.8 per cent. Both were unchanged from June.” – This is “very strange” because this same news report cites different periods to compare the overall unemployment rate (March) and the resident/citizens unemployment rate (June)?
Normally, a comparison has to be with a year ago, using the same period.
All 3 unemployment rates increased, but media gave impression that they decreased?
Actually, according to the Labour Market Third Quarter 2014 report – the overall, resident and citizens unemployment rates increased from 1.8, 2.7 and 2.8 per cent a year ago, to 2.0, 2.8 and 2.9 per cent now.
Contradicting one’s own “spin”?
Here’s what is even more strange – almost in the same breath – the news report now says “Employees have a positive outlook on their pay – some 62 per cent of 400 workers in Singapore expect a hike in their salaries in the year ahead, found a survey by recruitment firm Randstad done in October and November – but then gives readers an anticlimax by “pouring cold water” over its own “spin” by saying that “Engineer Darius Tian, 29, said he was happy to hear that wages are expected to rise. “But I’m sceptical about the amount, based on the current economy and my experience over the past four years of work.”
So, if the “spin” in the story is that wages are expected to rise – why quote a worker who seems to be implying that he had hardly any real wage increase in the last four years?
38% of workers expect no pay rise?
Actually, if you read between the lines – “some 62 per cent of 400 workers in Singapore expect a hike in their salaries in the year ahead” means that 38 per cent of the workers don’t expect any pay increase at all!
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TRS Contributor