Average household incomes up, but rich-poor gap continues:
report
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SINGAPORE: The average monthly household income from work for
Singaporeans grew by 4.3 percent to $6,260 last year.
One reason for the growth was the sustained economic
expansion.
But a Department of Statistics report also noted that the gap
between the high and low income groups was continuing.
The report said the expanding economy and improving labour market
had benefited all income groups.
Taking inflation into account, employed households enjoyed real
income growth of 3.2 percent last year.
Among the lowest 10% of employed households, there was a strong
pick-up even though individual wages among lower-income workers had
generally remained stagnant.
This might be due to an increase in the number of working persons
in the lower-income households.
Professor Chew Soon Beng, Professor of Economics at Nanyang
Technological University, said: "During the recession, many
household members in the low income group had quit the labour
market. Now that the economy is doing very well, many of them,
especially housewives, have rejoined the workforce and find gainful
employment. That is good news. But I think the pay they get is
relatively low."
Higher-income households saw faster income growth, reflecting
higher wage increases for skilled workers.
But this was also causing the gap between the high and low income
groups to continue.
Professor Chew said: "High-income executives in Singapore, their
pay is determined by the pay of high-income executives in developed
countries. The pay of low-income workers in Singapore is determined
by the pay of similar workers in the developing countries. The
Workfare is very important and also the government has to ensure
the cost of living in Singapore remains affordable."
According to the Department of Statistics report, the government's
policies such as the Progress Package, including the Workfare
Bonus, have helped control the household income disparity. -
CNA/ir
