Daily Lessons from Life 20 February 2013 - Median household income growth moderated in 2012

"Median household income growth moderated in 2012 - CNA 20 February 2013

SINGAPORE: Singaporean households earned more from work last year compared to the year before, but wage growth moderated, with bottom earners being the hardest hit.

Despite the economy slowing down last year, wages continued to rise.

The median monthly household income from work grew in 2012 by 7.5 per cent in nominal terms, and 2.7 per cent in real terms after factoring inflation of about 4.6 per cent.

According to the Department of Statistics' latest report "Key Household Income Trends", household median income rose by S$530 -- from S$7,040 in 2011 to S$7,570 in 2012.

Despite the wage growth, the rate of increase actually moderated. In 2011, real wage growth was 5.6 per cent. Analysts put it down to several factors, including the economic slowdown and inflation.

As for the lowest 10 per cent of households, they saw real income dropping by 1.2 per cent per household member in 2012, while the top 10 per cent of households saw real income growing by about 5 per cent.

The Gini Coefficient, which measures the wage gap, increased slightly to 0.478 last year, from 0.473 in 2011. Government transfers like utilities rebates, GST Credits and Workfare Bonus helped to mitigate this gap. With such social transfers, the Gini Coefficient moderated to 0.459.

Figures also showed that Singaporeans who live in smaller flats received more of such transfers.

Those in 1- to 2-room public flats, received the most -- at over S$6,000 per household member, followed by those in 3-room HDB flats at S$1,530 per household member on average.

Analysts said that as a developed country, the income divide in Singapore would remain, but it could be managed. They added that more could be done to help low wage earners.

With Singapore's Budget Statement coming out on Monday, analysts expect the government to dish out more help for the lower wage earners.

"So how are you going to get better subsidies to help the buying power of the lower 10 per cent of our population?" added Assoc Prof Koh."

Monthly (right?) Median Household Income in 2012 is: S$7,570.

Lessons for me are:

1. who are the bottom 10%? how old are they? why are they in such a situation - laziness, unfortunate circumstances or whatever? If they are putting in their hearts and souls, are the jobs they are doing UNDERPAYING? where are their kids assuming they have kids?;

2. with this Monthly Media Household Income, is it REASONABLY comfortable for the household to support a 3-kids family with 4 aged parents and parents-in-law living in their 1st HDB flat paying the 'necessary MAID's help', 'private tuition for the kids as the MOE's schools are NOT YET at 'Every School is a GOOD School' yet?

IF so, what type of jobs are these? are they sustainable? will these jobs be around in 2030? how many are occupied by FAKE FTs vs. born and bred Singaporean talent?;

3. how about the Monthly Median Expenses of Singapore Household? How about THAT of the bottom 10%? are they paying for the 'Health Care costs' since they tend to be less able to take care of themselves? the rental of their living space? the transportation costs to and from work? etc?

With these profiled, Singapore can develop a National Standard of A Reasonable Income Less Expenses so that Singaporeans KNOW if they are doing better or worse that the National Median Household Income and Expenses Standard! Something measurable and hence can be appraised properly.

A first step towards national accountability?