Wage growth outpaced productivity growth in recent years

Singapore

REAL wages rose faster than productivity in recent years, even though real wage growth should track productivity growth over the long run to be sustainable.

The observation was made by Senior Minister of State for Trade and Industry Koh Poh Koon yesterday, in reply to a question on productivity and wage gains from Saktiandi Supaat (Bishan-Toa Payoh GRC). From 2011 to 2017, real wages for resident workers rose by 1.9 per cent per year, while productivity grew by only 1.1 per cent per year over the same period.