Be a plumber or be unemployed?

I read an article in The Straits Times today on how a 50 year old Chinese plumber makes RMB10,000 a month clearing drains in Wuhan, Hubei, China. This is about S$2,000 and about 5 times more than what a fresh graduate in China is able to command as an office executive.

The plumber has saved enough money to buy a car and pay off his mortgage, feats which Chinese office executives are envious of. So, could we expect more graduates to become plumbers in China? Most unlikely.

"Over a quarter of new college graduates are avoiding more physical work as electricians, plumbers, and drivers in favor of office jobs, according to the Labor Ministry, despite average starting salaries less than half of what’s on offer elsewhere."

It was reported that fresh graduates in China would rather remain unemployed than to take up a job that involves menial labour. A fresh graduate, after six months of being jobless, admitted that he could get a job as a blue-collar worker which would pay well but he would rather not do it. Why? It would not sound good when he tells people what he does.

Now, I wonder if we gave the plumber a fancy title, would that help? Sanitation Specialist? Does it sound better?

Anyway, this case is not exceptional as a survey found that 6 in 10 graduates in China would prefer to be a white collar executive making RMB 3,000 a month instead of a blue color worker making RMB 5,000 a month.

I don't think this situation is unique to China either. It is probably the same anywhere.

Is a society more advanced when its people are more concerned about class than financial well being? Class could take many forms, of course, and not just in the form of job titles.

What about the place of work and the dress code? Is working in the CBD and wearing a tie and jacket at work more prestigious than working in a warehousing district and wearing jeans and t-shirt at work? What if the latter were to pay twice as much as the former?

Should we care about how people look at us or how our bank account looks?

Related post:
A movie: The Iron Lady.

SGX: Heavy selling.

SGX Centre Two

SGX's share price could go as low as $6.30 in time. This is the neckline of a reverse head and shoulders pattern which formed from November 2011 to January 2012.

However, both the rising 50d and 100d MAs should provide some support in case of further price weakness. Would they be strong enough to prevent a more drastic decline in price? Your guess is as good as mine.

If I were interested in getting in on the long side, I would pay attention to the 100d MA. See how a trendline connecting the lows of December 2011 and January 2012 seems to approximate its position? Should be a stronger support than the 50d MA and if it should go, $6.30 is the next support.

March 6: Noble Group, Singapore Exchange, Swiber, Hi-P International
Tuesday, 06 March 2012

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