Wage growth set to continue amid global economic recovery, promising outlook: experts
SINGAPORE — The global economic recovery and a generally bright outlook could support continued wage growth, experts said.
But they added that wages will also have to catch up with rising inflation.
The remarks were made after the publication of a report by the Department of Statistics (SingStat) on Tuesday February 15, which revealed that median household income rose last year, after falling in 2020 for the first time in a year. decade.
Maybank Kim Eng’s chief economist, Chua Hak Bin, said: “The strong economic recovery and generous wage subsidies have likely pushed household incomes above pre-pandemic levels.
“A tighter labor market, with many foreigners leaving Singapore over the past two years, may also have boosted resident wages and household incomes.”
Lawrence Loh, professor of business at the National University of Singapore, said: “Fundamentals have remained strong with sustained consumer demand and business viability.
“(The rise in household incomes) also hinges on the effectiveness of pandemic support measures, including those related to jobs and business relief.”
Economists said this revenue growth is expected to continue in the coming year.
Professor Loh said: “The growing momentum in household incomes will continue moderately in line with the broader economic growth forecast.”
He added that the global economic recovery will be a critical factor in determining this increase.
Dr Chua said: “The outlook remains positive this year as economic reopening and easing of border controls will support growth and jobs.
“Economic reopening is expected to revive the consumer and hospitality sectors, which will support jobs and wages for low- and middle-income households.”
They also observed that household income inequality should continue to decline, thanks to progressive wage and labor policies.
Dr Chua said: “The introduction of the local qualifying wage and the extension of the progressive wage scheme to the retail sector in September this year will also raise wages for low-income households and help reduce inequality. “