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SINGAPORE – Income levels fell this year for Singapore residents due to the Covid-19 pandemic, while the employment level fell to a six-year low in June before recovering after the blackout period.
The nominal median income for residents – that is, Singaporeans and permanent residents – fell 0.6 percent to $ 4,534 for the year through June, up from $ 4,563 last year, according to advance annual estimates released by the Ministry of Manpower (MOM) on Thursday. (December 3).
After taking inflation into account, real median income fell 0.3%, reversing the 2.2% growth of the previous year.
Income data is for people with full-time employment and excludes employer contributions to the Central Provident Fund.
Real incomes in the 20th percentile fell 4.5 percent excluding government payments, which the ministry says is because the industries hardest hit by the pandemic have a high concentration of people with lower incomes.
The incomes of low-income self-employed workers, such as taxi drivers or private car drivers and street vendors, were also affected by falling tourist arrivals, work-from-home arrangements, and the temporary suspension of food and beverage services. drinks. outlets during the circuit breaker’s two-month period from April to June, according to the report.
The MOM also noted that after adding in government payments to the lowest income earners, such as the Workfare Income Supplement and the one-time Workfare Special Payment this year, the income level at the 20th percentile this year is similar to last year’s level.
During the five years from 2015 to 2020, income growth for full-time workers in the 20th percentile (2.9% per year) remained slightly above the median (2.7% per year).
MOM’s annual report is based on data collected in June. A separate report released in October with preliminary data on the labor market situation in the third quarter showed that resident employment rebounded and the pace of rise in unemployment rates has slowed.
Human Resources Minister Josephine Teo also pointed out at a press conference on Thursday that the impact of the Covid-19 crisis on the non-resident workforce in Singapore was greater, which is not reflected in Thursday’s report.
In the latest monthly update on unemployment, the general rate and the rate for citizens were unchanged in October, at 3.6 percent and 4.9 percent respectively. The rate for residents increased to 4.8 percent, up from 4.7 percent in September.
Meanwhile, the overall employment rate for residents 15 and older fell to 64.5 percent in June, the lowest since 2014 and down from 65.2 percent the previous year.
“This was a smaller decline than in past recessions, helped by slower population and labor force growth,” the MOM noted in its report.
Young people aged 15 to 24 were hit the hardest of all age groups, and their employment rate fell to 30.9 percent in June, down from 33.9 percent the previous year.
This was because the sectors in which they commonly work, such as food and beverage services, administrative and support services, and retail, experienced a significant employment contract amid the pandemic, and the employment rate of this group, which represents about 6 percent of the population. The resident workforce has also been on a downward trend in recent years as more young people continue their studies, the MOM said.
In contrast, 28.5 percent of residents 65 and older were employed in June of this year, up from 27.6 percent.
The ministry said this reflects sustained efforts to boost their employability and increased demand for essential services such as cleaning and security due to the coronavirus outbreak.
For residents aged 25 to 64, who make up the majority of the workforce, the employment rate dropped slightly to 80.3%, from 80.8% last June. It stayed close to the 80.5 percent average over the past five years.
The employment rate for men fell more sharply than that of women. The rate for men fell from 88.8% to 87.9%, the lowest level since 2004, while that for women fell only slightly from 73.3% to 73.2%.
The participation rate of the resident labor force remained stable, helped by the increase in the number of mature workers.
But as the economy reeled from the impact of Covid-19, a record number of residents were not looking for work because they felt their job search would be fruitless. This group of discouraged workers rose to 16,400, or 0.7 percent of the workforce, in June.
The group was more than twice the size in 2019 and higher than the previous peak of 11,100 in the 2009 recession.
Older and less educated residents continued to be the largest groups among discouraged workers.
Non-professionals, managers, executives and technicians (non-PMETs) also fared worse than PMETs on several other indicators covered in Thursday’s report.
This is mainly because the industries most affected by Covid-19 have a higher concentration of non-PMETs and their jobs are less suitable for remote work.
The unemployment rate for non-PMET residents rose sharply to 6.4 percent in June, up from 4.7 percent the previous year. For PMETs, the rate rose to 3.5 percent, compared to 2.9 percent.
There was also a steeper increase in the time-related underemployment rate among non-PMETs. The overall rate increased from 3.1% to 4.1% during the year through June, but was below that of the 2009 global financial crisis (4.3%).
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