Real household incomes decline for first time in more than 10 years

Singapore Residents

 

Last year, Singapore’s households suffered from the Covid-19 pandemic, with median household income for the first time declining since the global financial crisis battered the economy more than ten years earlier.

The average household revenue plummeted 2,5% from 9,425 to 9,189 dollars in nominal terms last year. This results in a 2.4 percent fall in real rates following analysis of inflation.

This compares to the fall observed in 2009, with the total monthly job household income falling by 1.5% in nominal terms or 2.4% in real terms after inflation.

The Statistical Office (DOS), in its latest study published on Monday afternoon (Feb 8), has found that households with fewer wages are the worst affected and those below 10% have seen actual sales declines of 6.1%.

In the other side, actual decreases in households ranged from 1.4% to 3.2%.

But the Gini coefficient was lowered slightly from 0.452 to 0.375 by government payments and taxation. Incoming inequality from 0 to 1. The Gini coefficient calculates 0 is the same as the one.

“This can be attributed to the significant amount of government support provided during the Covid-19 crisis in 2020, especially for households staying in the smaller Housing Board flats,” the Does said in a statement.

Residents – even those without a sole staff – earned $6,308 on average per family member last year, compared to $4,684 in 2019 from separate government programs.

The DOS have found that, over the last five years, median household earnings from the job have risen by 1% per annum in real terms or 5.2% cumulatively since 2015.

The mid-month revenue of the family from jobs per participant declined from $2,925 in 2019 to $2,886 in 2019, down 1.3% nominally or 1.2% practically.

This statistic rose from 2015 to 2020 by 14.6% or 2.8% cumulatively in actual terms each year.

Song Seng Wun of the CIMB economist noted that while total median household earnings did not come as a disappointment, their decreases were less than expected, provided that the recession in Singapore last year was its peor ever.

This was possibly attributed, in part, to Budget 2020 actions such as the job assistance scheme, which avoided a deterioration of the jobs market as was initially feared.

Mr Song added that the recovery would be inconsistent in the coming year. This year’s budget would presumably concentrate on the areas needing more funding.