Three months ago, Ms Chloe Lin (not her real name)
splurged on a big-ticket item. It was her daughter's 11th
birthday.
Ms Lin, 33, bought a mango vanilla cake decorated with
characters from the movie Frozen. It cost her $50 - one-seventh of
the $360 she got a month from ComCare, Singapore's social aid
scheme for the poor and needy.
But for Ms Lin, it was worth it. "It's her favourite
cartoon and flavour," she said simply.
Having dropped out of school in Secondary 2, Ms Lin
struggles to hold on to a job. Her longest stint was as a property
telemarketer from 2010 to 2013, earning $7 an hour. But when the
sector slowed, she was let go. Twice divorced, she now lives in a
one-room rental flat in Ang Mo Kio with her daughter.
Last year, Ms Lin applied for and received ComCare
help. For nine months, the monthly stipend was all the pair had to
live on.
Ms Lin is among a growing number of young Singaporeans
who are in need and having to rely on the Government for
handouts.
Ministry of Social and Family Development (MSF) data
shows that 5,644 young households - with applicants aged below 35,
the official definition of youth - received ComCare's short- to
medium-term financial aid in the financial year of 2015.
RISKS OF GIG ECONOMY
The gig economy is
going to aggravate the social and job-related causes of poverty.
Retrenchment due to job obsolescence and job disappearance will
increase.
LABOUR ECONOMIST HUI WENG TAT
This is a 40 per cent jump from the 4,016 young
households who got such ComCare aid in 2012 - the earliest year
that age-segregated data was made public. By contrast, the number
of older households whose applicants are aged 35 to 59 went up less
- by 34.9 per cent.
Over the years, the Government has become more generous
in administering ComCare, bumping up cases. Families now get help
when they have a monthly household income of $1,900 or less, or a
per capita income of under $650, among other criteria.
But what experts say is troubling is that young
Singaporeans account for one in five recipients - a proportion that
has not budged despite government efforts such as student care and
skills-upgrading subsidies.
It is also just a shade under the share that older
Singaporeans aged 60 and above form (these do not include those who
get long-term help due to illnesses or disabilities).
The numbers also surprised Ms Rachel Lee, a principal
social worker at Fei Yue Family Service Centre. The social worker
has seen more younger families seeking help at the centre, but was
taken aback when told that the proportion is similar to those 60
and older.
"They may not be the majority but if we don't help
these young families break out of the vicious circle, they can get
trapped in it, especially those with dependants," she said.
Another set of data also suggests that the problem of
poverty among young Singaporeans can be quite intractable. More so
than other age groups, they seem more stubbornly stuck with low
wages.
Manpower Ministry data shows that last year, there were
fewer employed residents aged 15 and above earning a gross monthly
income of $1,000 and less, compared to 2015. However, those aged 25
to 34 registered the smallest percentage point drop, meaning that
younger workers are slower in breaking out of this low-income
bracket compared to other age groups.
There are 41,500 people aged between 15 and 34 who earn
under $1,000 a month as of last June.
There are two reasons why some young Singaporeans are
in difficulties, say those interviewed.
One is that some struggle to move out of the poverty
trap - they are either born into poverty and remain mired in it, or
are stuck in jobs that just do not pay enough.
Mr Muhd Alfian K., 30, who has O-level qualifications,
is one of them. A crane operator, his life revolves around hitting
a target of loading and unloading at least 52 containers within a
12-hour shift. His salary will then be bumped up to $2,000.
This translates into a take-home pay of $1,600 for his
family of five.
His wife Irah Nurshahrani, 26, tried to help by taking
on jobs such as a hotel housekeeper and a petrol station cashier.
But she has had to move from job to job after taking too many days
off to care for their children, aged one, two and three. "He works
long hours and I try to get work too but it is hard and the money
is not enough."
They received $100 in ComCare help for three months
last year.
Two, more young Singaporeans are poor because more are
now unemployed.
The jobless rate for those below 30 years old has risen
over the years and was at 5 per cent last year, double that of
other age groups.
An MSF spokesman explained why the young seek
assistance: "Some are unable to secure employment due to caregiving
needs for young dependants and may require financial assistance in
the interim. There are others who might be facing family issues
such as divorce, incarceration or violence and require assistance
while their family stabilises as they are unable to work."
Looking into the future, the picture is muddied by the
rise of the gig economy, displacing traditional jobs. For now, some
young workers - tech-savvy and physically fit - are riding the wave
and seeing their incomes rise. But their long-term financial health
is far from certain.
The authorities worry about the 200,000 gig economy
workers here because many lack statutory protections and benefits,
including CPF contributions. Deputy Prime Minister Tharman
Shanmugaratnam said last year that they face risks such as wage
instability and not having enough for retirement.
Warned labour economist Hui Weng Tat: "The gig economy
is going to aggravate the social and job-related causes of poverty.
Retrenchment due to job obsolescence and job disappearance will
increase."
So what is to be done?
Ensure they remain employed, and help them remain
employable, said labour economist Randolph Tan, a Nominated MP.
Measures such as job placement help and re-skilling need to be
significantly stepped up, said Singapore Management University's
law don Eugene Tan.
To better help those already in a rut, some social
workers will soon be trained to help low-income families better
manage their finances.
Meanwhile, those in the gig economy should get a hand
to build up their CPF savings, such as incentives for voluntary
top-up, say some such as Dr Tan Wu Meng, an MP for Jurong GRC .
Above all, experts and social workers said there should
be urgency in tackling the issues faced by Singapore's young and
working poor. Otherwise, warned Prof Randolph Tan: "We could see
the beginnings of a social catastrophe."
A version
of this article appeared in the print edition of The Sunday Times
on April 23, 2017, with the headline 'Young and in
need'.