Some low-skilled foreign labour can actually have a multiplier
effect and can actually free the local middle and upper-middle
skilled persons to move up the value chain.
Example :
Maid.
Let's say a maid come and work in Singapore.
When the maid work in a household, it frees up the wife, so that
the wife can go out and work in the workforce.
So in this example, a maid results in a middle skilled person to
better employ his / her skills.
Another example,
Let's say.....construction workers or janitors / cleaners...
When a company or a school or an organization employs
construction workers, janitors, cleaners, that means these
positions are filled and are taken care of, and are filled by
usually inexpensive workers, which means that they can have the
budget to employ the other positions such as accounts, admins, and
so on, to be filled by middle skilled persons.
Let's say there is no cheap low skilled foreign workers.
Let's say all construction workers, janitors, cleaners, are
local workers. It means higher wages, higher expenditures, and all
other things being equal, that means the organizations and
companies will have smaller budget leftover and smaller capability
in filling and employing other positions in middle and upper-middle
skilled positions.
Since Singapore's human development is actually quite good,
since the educational standard is quite good, actually we can say
the average worker in Singapore probably would be better off if
they are employed in jobs which pays decently in middle skilled
jobs. It would be better fit.
One way that we can make most people to enter the middle skilled
jobs, is to sort of push them into it, and one way is to fill the
lower positions, and this way it can free up both at the company
level and at the individual level to open up more better jobs.
Makes sense ?
