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S'pore grads in recession catch up eventually

Greatbirdlegend

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Greatbirdlegend

Greatbirdlegend

1st Gear

 

this is good news for some of the young people.

from personal experience i have seen some of the younger people from the last downturn come to do quite well after a few years.

 

---

 

S'pore grads in recession catch up eventually

Teh Shi Ning | The Business Times | Wed Nov 23 2011

 

S_pore_grads_in_recession_catch_up_eventually-topImage.jpg

 

SINGAPORE - Graduates entering the job market here in a recession start off with lower pay, but their salaries catch up with the wages of those who start in economic booms after about three years on the job.

 

This compares with an 18-year disadvantage faced by graduates joining the United States workforce in a recession, says a study published in the latest issue of the Economic Survey of Singapore, released yesterday.

Click here to find out more!

 

Economists from the Ministry of Trade and Industry's (MTI) Economic Division found that a one percentage point increase in the unemployment rate at the time a university graduate starts work reduces his starting pay by about 6-8 per cent.

 

The results of their statistical regressions are similar to those of a US study of graduates which finds an initial wage loss of 6-7 per cent for a one-point increase in the US unemployment rate.

 

But this negative impact diminishes over time and disappears after a graduate has gained three years of work experience. "Singapore's labour market would thus appear to be efficient enough to prevent the perpetuation of downward wage persistence for 'unlucky' cohorts of graduates," the study's authors said.

 

The US study found that it takes almost 18 years before a graduate's initial wage disadvantage is mitigated. Singapore's recovery period could be shorter due to higher job mobility of university graduates here, or greater variable and performance-linked components in the wage structures here, which could make it easier for "unlucky" graduates to catch up with the skills acquired, the MTI economists said.

 

Their results do come with caveats though. The data available, from 2000 to 2007, covers just one recession and the short time frame may exclude long- term negative effects. Also, without information on individual ability and job switches, they were unable to assess how different segments of university graduates are affected - key because wage persistence can differ for people of varying abilities.

 

The economists said that this exploration of whether joining the labour force in recession-time has a negative impact on wages is an area "of growing importance", given the "rising economic volatility in Singapore". There have been three recessions in the last 15 years, and only one before 1996.

 

Job creation was stronger in Q3, with 32,300 jobs added in the quarter compared to 24,800 in Q2.

 

But with economic slowdown now underway, economists like OCBC Bank's Selena Ling expect the labour market to "soften this quarter and next year". Pointing to recent official business expectations surveys, she notes that employers have already turned cautious about hiring.

 

This article was first published in The Business Times.

 

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AhJason

AhJason

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But their pay will take longer, or some cases, can't catch up because their starting pay was much lower during the recession. I don't see how they will catch up, at least pay wise.

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Greatbirdlegend

Greatbirdlegend

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But their pay will take longer, or some cases, can't catch up because their starting pay was much lower during the recession. I don't see how they will catch up, at least pay wise.

 

those who are good/lucky/smart enough to change jobs will do better.

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AhJason

AhJason

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those who are good/lucky/smart enough to change jobs will do better.

 

Nt only that though - u also lose out in CPF contribution, etc and in turn might delay plans to get HDB flat, that is, if you found a job in a recession when starting pay tends to be lower. Unfortunately.

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Greatbirdlegend

Greatbirdlegend

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Nt only that though - u also lose out in CPF contribution, etc and in turn might delay plans to get HDB flat, that is, if you found a job in a recession when starting pay tends to be lower. Unfortunately.

 

yup no doubt about the lost opportunities.

nothing you can do about it but at least the good or lucky ones do catch up faster.

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Kangadrool

Kangadrool

Supersonic
(edited)

But their pay will take longer, or some cases, can't catch up because their starting pay was much lower during the recession. I don't see how they will catch up, at least pay wise.

 

Only way is to jump ship. You are not treasured until you tender your resignation. This is the hard truth about how management in most companies here treat their staff.

 

So, you can't really fault Singaporeans for job hopping. Even FTs also job hopped after learning the ropes and you'll be surprised that their salary expectation (higher than locals).

 

Better jump ships more frequent when you are young and accumulate all your increments when young. Once you hit 40, you are deem too old for 99% of the positions.

Edited by Kangadrool
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Lethalstrike

Lethalstrike

Turbocharged

Only way is to jump ship. You are not treasured until you tender your resignation. This is the hard truth about how management in most companies here treat their staff.

 

So, you can't really fault Singaporeans for job hopping. Even FTs also job hopped after learning the ropes and you'll be surprised that their salary expectation (higher than locals).

 

Better jump ships more frequent when you are young and accumulate all your increments when young. Once you hit 40, you are deem too old for 99% of the positions.

 

Totally agree with you on this. For either MNC or SME, the situation will be the same.

 

Either jump ship to for pay increments, or wait to be headhunted. [cool]

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Ah_tee

Ah_tee

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(edited)

u pple believe all these stats ?

 

 

all i know is a engineering grad generally start off with 2-3k 10yrs ago

 

 

10yrs later now the fresh grads now are still starting with 2-3k.

 

 

but the property prices 10yrs ago and now ?

 

the cost of living 10yrs ago and now ?

 

 

alot of pple are saying sg is now first world country with 3rd world wages.

 

 

let me remind you the FT prob wasnt so bad 10yrs ago and now. more good years ahead...

Edited by Ah_tee
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Kiadaw

Kiadaw

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u pple believe all these stats ?

 

 

all i know is a engineering grad generally start off with 2-3k 10yrs ago

 

 

10yrs later now the fresh grads now are still starting with 2-3k.

 

 

but the property prices 10yrs ago and now ?

 

the cost of living 10yrs ago and now ?

 

 

alot of pple are saying sg is now first world country with 3rd world wages.

 

 

let me remind you the FT prob wasnt so bad 10yrs ago and now. more good years ahead...

 

Housing is still affordable. Public transport is still aforddable. Not my words though

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Sabbie

Sabbie

Clutched

pui, when i grad it was the sars recession....my pay only 1500....if I did not quit and become an insurance agent I wouldn't be earning 8 to 10k a month...

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Ghostrider

Ghostrider

3rd Gear

But their pay will take longer, or some cases, can't catch up because their starting pay was much lower during the recession. I don't see how they will catch up, at least pay wise.

 

I know a local company that has a lot of long serving staffs....

 

You are right about their pay will never catch up...but the company makes it up by gving more bonus to the old staff...

 

Eg...old staff work for the compay since 1980...starting pay is $800. New staff join in 2011...starting pay is $2500. Bonus wise...old staff by now salary maybe only $1500...but the bonus wise...old staff get double of what the new staff gets. ie...if its 3 month bonus...then old staff will get 6 months !!

 

Surprisingly...its a local company.

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Sabbie

Sabbie

Clutched

Only way is to jump ship. You are not treasured until you tender your resignation. This is the hard truth about how management in most companies here treat their staff.

 

So, you can't really fault Singaporeans for job hopping. Even FTs also job hopped after learning the ropes and you'll be surprised that their salary expectation (higher than locals).

 

Better jump ships more frequent when you are young and accumulate all your increments when young. Once you hit 40, you are deem too old for 99% of the positions.

if u can't retire by 40, you can go eat s--t leow....

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