“Rosy incomes” in the news: Really?

May 8, 2022

https://www.facebook.com/laoliang/posts/7628271490524029
Multi-ministry task force (MTF) on Covid-19x (51)
-6.5% in the last 3 years or so, especially after taking into account the recent rising prices?
Media reports “rosy” incomes?
“Household incomes rose in 2021 to above pre-Covid levels as Singapore economy recovered” (ST, Feb 15) & “Lowest income groups least impacted by rising prices in second half of 2021” (ST, Jan 24)
However, Median gross income from work of employed residents aged 15 and over by nature of employment, 1996 -2021 (June)
– remained stagnant from 2019 – 2021 at $4,000 for full-time (excluding employer CPF)
After adjusting for inflation from 2019 (99.018 2018) to 2021 (105.5 Jan – Mar 2022) – does it mean that the real increase was a negative -6.5%?
(note: using Jan – Mar 2022 CPI to illustrate & highlight the likely and probable impact of the recent rising prices, on the Jun 2021 income data (latest publicly available data), & data.gov.sg only shows 2020 as the latest data)
From 1996 to 2021 – the increase in income was from $1,625 (1996) to $4,000 (2021), or 146.2% ($4,000 divided by $1,625), or about 3.7% per annum
So, with inflation at about 1.5% per annum (CPI 72.167 1996, 105.5 Jan – Mar 2022)) – does it mean that the real increase was only about 2.2% per annum (3.7 – 1.5)?
To illustrate, a lower-income worker who earned $1,000 in 1996 may only have had an average annual increase in income, of about $22 per year, or $17.60 in typical take-home pay (less 20% employee CPF)
May be an image of text that says '"ROSY INCOMES" IN THE NEWS: REALLY? 6.5% IN LAST 3 YEARS OR so, ESPECIALLY AFTER TAKING INTO ACCOUNT THE RECENT RISING PRICES? INCOME STAGNANT 2019- 2021 $4,000 FOR FULL-TIME INFLATION 2019 TO 2021 (105.5 JAN- MAR 2022) DOES IT MEAN REAL INCREASE NEGATIVE 6.5%? 1996-NOW- DOES IT MEAN THAT REAL INCREASE ONLY 2.2% P.A.? LOWER-INCOME LOWER $1,000 IN 1996: $17.60 TAKE- HOME PAY INCREASE P.A.'
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About the Author

Leong
Leong Sze Hian has served as the president of 4 professional bodies, honorary consul of 2 countries, an alumnus of Harvard University, authored 4 books, quoted over 1500 times in the media , has been a radio talkshow host, a newspaper daily columnist, Wharton Fellow, SEACeM Fellow, columnist for theonlinecitizen and Malaysiakini, executive producer of Ilo Ilo (40 international awards), Hotel Mumbai (associate producer), invited to speak more than 200 times in about 40 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of 2 countries. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.