SERVICE-RELATED JOBS

SERVICE-RELATED JOBS: **

(Pay levels): **

38.

Ms Jessica Tan Soon Neo asked the Minister for Manpower what is the trend on pay levels for services-related jobs with the increasing demand for these jobs and the impact of augmentation of foreign labour for these jobs.

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Dr Ng Eng Hen: There has been good growth in pay levels in the services sector over the years. Between 1998 and 2005, average monthly earnings 4 in the services sector rose an annualised 3.2% per annum, from $2,800 to $3,500. In real terms, the growth was 2.6% per annum.

Pay in the financial sector was the highest, with an average monthly income of $5,950 per employee. It also grew the fastest, at 4.4% per annum, from 1998 to 2005. Other sectors had average monthly incomes ranging from $3,000 to $3,600. Over the same period, average monthly income grew at 4% per annum for Community , Social and Personal Services , 3.7% per annum for Transport , Storage and Communications , 2.5% per annum for the Wholesale and Retail Trade, and 2.1% per annum for Business and Real Estate Services. Average monthly earnings in the Hotels and Restaurants industry were lower, at $1,300, with negligible growth over the same period.

Wages are primarily determined by specific industry conditions, rather than inflow of foreign labour. For example, the marine industry has a high proportion of foreign workers, but wages for resident workers are high, with average monthly earnings at around $2,700. Wage growth has also been good at about 4.5% in 2005. On the other hand, workers in the private security industry, who are largely Singaporeans, command comparatively lower average monthly wages, at $1,400 5 .

Quite to the contrary, for sectors such as the financial industry, the flexible access to global talent has helped these sectors grow and as a result wage growth has been buoyant.

The real competition is not between local and foreign workers in Singapore. It is between all workers in Singapore, and the workers from countries such as China, India and Vietnam. For wages to be competitive, they must reflect the value of the job as well as the productivity and contributions of the worker. Hence, the solution to ensuring sustainable wage growth is to raise productivity and to train our workers in the skills to take on the jobs that are created.

4 Average Monthly Earnings (AME) is computed based on mean concept and it includes all full-time and part-time employees who have contributed to CPF. Changes in earnings data can be influenced by overtime and compositional changes in the workforce.

5 Source: CPF, 2005 data.

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