Selasa, 11 Oktober 2011

Higher employment rate = Better life for more people?

RE: Singapore has one of the highest employment rates worldwide

"According to a report released by the Manpower Research and Statistics Department and the Singapore Department of Statistics, nearly eight in ten (77 per cent) Singaporeans aged 25 to 64 were employed in 2010.

The unemployment rate among citizens declined to pre-recessionary levels of 3.1 per cent in June 2011, down from a high of 4.5 per cent in 2009.

This surpasses economies such as Hong Kong, Taiwan, South Korea, Japan, the United States, Canada and the United Kingdom."



What is the intention behind highlighting something like that?

To remind Singaporeans that the Government is doing a good job, and/or that your lives are in fact very good, relative to the rest of the world?

I would love to conclude as such.

But I cannot help but to think that this high employment rate can be read in multiple ways. It does not only or necessarily suggest that the picture is all fine and dandy.

Firstly, it is misleading to compare employment rates of countries with and without welfare systems (namely unemployment benefits). 

It can be said that countries with unemployment benefits will generally see a lower rate of employment as people have the confidence to stay or choose to be unemployed over longer periods.

Secondly, while it is tempting to conclude that increasingly higher employment rate = better life for more people, the former may simply suggest that it is impossible for a family to get by decently without dual incomes, i.e. both parents working. Hence, people are unable to choose to be unemployed.
Strange concept to Singaporeans? Counter-intuitive?
Think about it for a second.

Remember, nothing is absolutely good (or bad). Everything is contextual.

Thirdly, it is absolutely misleading to present the national employment picture by highlighting the employment rate figures only.

There are other indices which paint the 'quality of employment' dimension, e.g. productivity: GDP per hour worked etc. These figures are also, if not more, important.

In fact, I am surprised that this 'quality of employment' dimension has not been included in this press release, because the President's maiden speech just this week emphasizes on 'quality'. I guess the contents of the President's speech will only affect work's directions and outcomes in the coming years, not immediately.

Lastly, perhaps, the Government ought to start developing a set of indices to help Singaporeans understand how the influx of foreigners has added to the economy, coz it's always been kind of unclear.
E.g. every Employment Pass/Work Permit added = S$X to the GDP or X no. of Citizen job (types of job) added to the economy for a period of X months etc.

Doesn't matter that such indices are not common in other countries. Singapore is special.

This will also help to facilitate the dialogue between the people and the government. No point engaging the public but only to talk in vacuum and about theories or emotions. Let's talk with facts and numbers. As many of them as possible.

And don't worry about the public being unable to handle the figures. Can't say that all Singaporeans can handle them, but there are enough who are competent and will do it for the rest.

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