Link: http://www.tremeritus.com/2013/05/25...-minimum-wage/
I refer to the following report about *economically inactive* Singapore residents.
More Singaporeans could re-enter workforce if firms adopt flexi-work - Channel NewsAsia
According to figures from the Manpower Ministry (MOM), there are more than 418,000 economically inactive (EI) residents aged 25 to 64.
The term *economically inactive* stretched my imagination. What does it mean? Does it equal *unemployed*? What is the purpose of reporting such statistics?
A significant proportion of Singapore Residents are unemployed
Let me try to calculate what percentage of our population is deemed EI.
From the table below, about 2,554,400 of Singapore residents are aged 20-64. To make it comparable to the figures quoted above, the residents aged between 25-64 is estimated to be 2,235,100, pro-rata.
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Statistics Singapore - Latest Data
Hence, when we look at age group 25-64, the percentage of Singapore residents deemed EI is about 18.7%. Should we be worried that about 1 in 5 Singaporeans are unable to find work?
Now, if I were to consider *EI* to be the same as unemployment, that would mean that Singapores unemployment rate is 18.7%.
However, the government has a different measure of unemployment. Accordingly, the measured overall unemployment rate was never higher than 4%. For 2012, it was reported to be 2%, according to the table below. This is much lower than the EI% calculated above. Is it realistic that Singapore enjoys such fantastic unemployment rates but yet the (by)election results seem to suggest otherwise?
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Unemployment - Ministry of Manpower
Singapore needs to implement minimum wage now
Singapores official unemployment rates have always been low by any international standards. Take EU for example. In 2008, the average unemployment was 10.8%, and spread between 5.7% to 23.6%. As such, Singapore government has always been quick and consistently indulge in self-praise for its miraculously low unemployment rate.
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Again using EU as an example: To counter unemployment, countries put in place minimum wage as a safety net. What does Singapore has? When Singaporeans are unemployed, who can they rely on?
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We need to change the definition of unemployment and minimum wage.
The low unemployment rates reported for Singapore has always been used as a basis to shape manpower and social policies. The government would cite low unemployment rate and try to convince Singaporeans that the labor force is tight and hence there is a need to continue the import of foreign labor to support the *vibrant* economy. The government also take the stand that the low unemployment rate does not warrant a serious think about introducing minimum wage.
On the contrary, I say we need two things now.
One, change the definition of unemployment so that the figures would more accurately represent those who are economically inactive.
Two, we need to legislate minimum wage to protect Singaporeans.
I refer to the following report about *economically inactive* Singapore residents.
More Singaporeans could re-enter workforce if firms adopt flexi-work - Channel NewsAsia
According to figures from the Manpower Ministry (MOM), there are more than 418,000 economically inactive (EI) residents aged 25 to 64.
The term *economically inactive* stretched my imagination. What does it mean? Does it equal *unemployed*? What is the purpose of reporting such statistics?
A significant proportion of Singapore Residents are unemployed
Let me try to calculate what percentage of our population is deemed EI.
From the table below, about 2,554,400 of Singapore residents are aged 20-64. To make it comparable to the figures quoted above, the residents aged between 25-64 is estimated to be 2,235,100, pro-rata.
Statistics Singapore - Latest Data
Hence, when we look at age group 25-64, the percentage of Singapore residents deemed EI is about 18.7%. Should we be worried that about 1 in 5 Singaporeans are unable to find work?
Now, if I were to consider *EI* to be the same as unemployment, that would mean that Singapores unemployment rate is 18.7%.
However, the government has a different measure of unemployment. Accordingly, the measured overall unemployment rate was never higher than 4%. For 2012, it was reported to be 2%, according to the table below. This is much lower than the EI% calculated above. Is it realistic that Singapore enjoys such fantastic unemployment rates but yet the (by)election results seem to suggest otherwise?
Unemployment - Ministry of Manpower
Singapore needs to implement minimum wage now
Singapores official unemployment rates have always been low by any international standards. Take EU for example. In 2008, the average unemployment was 10.8%, and spread between 5.7% to 23.6%. As such, Singapore government has always been quick and consistently indulge in self-praise for its miraculously low unemployment rate.
Again using EU as an example: To counter unemployment, countries put in place minimum wage as a safety net. What does Singapore has? When Singaporeans are unemployed, who can they rely on?
We need to change the definition of unemployment and minimum wage.
The low unemployment rates reported for Singapore has always been used as a basis to shape manpower and social policies. The government would cite low unemployment rate and try to convince Singaporeans that the labor force is tight and hence there is a need to continue the import of foreign labor to support the *vibrant* economy. The government also take the stand that the low unemployment rate does not warrant a serious think about introducing minimum wage.
On the contrary, I say we need two things now.
One, change the definition of unemployment so that the figures would more accurately represent those who are economically inactive.
Two, we need to legislate minimum wage to protect Singaporeans.