Singapore’s real wage growth declines

Pay rises eroded by high inflation, real wage growth 0.9% 

·         Even though the tight labour market raised wages by 6.1%, Singaporeans only enjoyed a real wage growth of just 0.9%. This was much lower than the real wage growth of 2.9 per cent workers enjoyed in 2010.Most of the wage increase was eroded by inflation. 

·    The twin scenarios of high wages and high inflation point towards a wage-price spiral but economists remain divided on this occurrence. This is because the uncertain economic conditions may cool global demand and hence, place lower pressures on wage increase.

·         Policy measures to raise real wages have been deliberated. Options such as raising absolute wages and boosting the pay of the low-wage earners have been contemplated upon. 

 

http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_816919.html