Foreign Labour in Singapore
Introduction
Background Of Foreign Labour in Singapore
Since the day Singapore gained independence, the growth of the economy had been advancing tremendous over the past four decades. The influx of foreign labour has been playing an important role towards the Singapore economy. Even up to today, Singapore, itself with scarce resources, could only rely on human resource to sustain the economy growth. With a tightening labour market and a low unemployment rate, this gradual increase in foreign labour had been making up for the shortfall in local human resource (see Figure 1).
Sources: Migration Information; complied from Rahman (for 1970 and 1980) and Singapore Department of Statistics (for 1990 to 2010).
In the recent years with the increasing number of foreign labour, local labour had to face stiff competition against foreign labour for employment. Government further intensifies the competition by introducing policies and incentives to attract more foreign labour. However, this influx of foreign labour remains essential towards Singapore economy.
Definition of the theory of demand and supply
The theory of demand in labour defined the quantities of labour employers are willing and able to hire at different rate in the given time period. In general, demand has a downward relationship between price and quantity (see figure 2). The law of demand states that the higher the price, the lower the demand. That is to say, the quantity of labour demanded will be dependent on its wage rate.
D1, D2 and D3 are points on the demand curve. Each point on the curve reflects direct correlation between labour quantity demanded and price. The demand relationship curve illustrates the negative relationship between wages rate and labour quantity demanded. The higher the wages rate, the lower the labour quantity demanded, and the lower the price the more will be in the demand.
The theory of supply in labour defined as the willingness and ability work specific
Background Of Foreign Labour in Singapore
Since the day Singapore gained independence, the growth of the economy had been advancing tremendous over the past four decades. The influx of foreign labour has been playing an important role towards the Singapore economy. Even up to today, Singapore, itself with scarce resources, could only rely on human resource to sustain the economy growth. With a tightening labour market and a low unemployment rate, this gradual increase in foreign labour had been making up for the shortfall in local human resource (see Figure 1).
Sources: Migration Information; complied from Rahman (for 1970 and 1980) and Singapore Department of Statistics (for 1990 to 2010).
In the recent years with the increasing number of foreign labour, local labour had to face stiff competition against foreign labour for employment. Government further intensifies the competition by introducing policies and incentives to attract more foreign labour. However, this influx of foreign labour remains essential towards Singapore economy.
Definition of the theory of demand and supply
The theory of demand in labour defined the quantities of labour employers are willing and able to hire at different rate in the given time period. In general, demand has a downward relationship between price and quantity (see figure 2). The law of demand states that the higher the price, the lower the demand. That is to say, the quantity of labour demanded will be dependent on its wage rate.
D1, D2 and D3 are points on the demand curve. Each point on the curve reflects direct correlation between labour quantity demanded and price. The demand relationship curve illustrates the negative relationship between wages rate and labour quantity demanded. The higher the wages rate, the lower the labour quantity demanded, and the lower the price the more will be in the demand.
The theory of supply in labour defined as the willingness and ability work specific