I refer to the article “Higher pay but fewer
full-time jobs for polytechnic graduates: Survey”
(Today,
Jan 9).
It states that “The median gross monthly salary of fresh poly
graduates in full-time permanent employment went up by S$50 to
S$1,850. For post-NS graduates, their salaries rose by S$100 to
S$2,100”.
According to the same survey for 2007 (see HERE),
the average gross monthly salary of fresh poly graduates was
$1,805, and $2,171 for post-NS poly graduates.
This means that salaries grew by 2.5 per cent for fresh
graduates, and decreased by 3.3 per cent for post-national service
graduates, over the last five years.
On an annualised basis, this works out to 0.5 per cent and minus
0.7 per cent per annum, for fresh and post-national service
graduates.
Since inflation was 2.1, 6.6, 0.6 and 2.8 per cent for 2007,
2008, 2009 and 2010, respectively, and current inflation is at 5.7
per cent, I estimate that the salary of fresh graduates and
post-national service graduates may have declined in real terms by
about 14 and 18 per cent, respectively, over the last five years or
so.
I am rather puzzled by the use of the median gross monthly
salary in this year’s survey, when the previous years’ were on the
average gross monthly salary.
Median vs average salary?
For example, although this year’s median gross monthly salary
for fresh graduates increased by 2.8 per cent, to $1,850 from last
year’s $1,800, and that for post-national service graduates from
$2,000 to $2,100, the average gross monthly salary in last year’s
survey was higher at $1,871 and $2,183 for fresh and post-national
service, respectively.
So, without the average data for this year, or the median data
for the previous years, we cannot determine to what extent the
median and average salary went up or down, in nominal and real
terms.
Full-time jobs declining?
The percentage of poly graduates in full-time permanent
employment declined from 68.5 to 67 per cent this year. Actually,
the decline may be greater if we compare this year’s to the 75.3
per cent in 2007.
Foreign competition?
To what extent has the S-Pass, which used to have a minimum
salary of $1,800, and the recently discontinued Employment Pass
Eligibility Certificate scheme which allowed foreign graduates to
stay up to a year in Singapore to look for a job, contributed to
the drop in real salaries of poly graduates?
.
Leong Sze Hian
