Debated in Parliament on 9 Jul 2014.
Ms Irene Ng Phek Hoong asked the Minister for Manpower in light of the Ministry's Labour Market First Quarter 2014 report which states that the unemployment rate for citizens has risen to 3% (a) how can this be explained given the tighter labour market and stricter access to foreign manpower; (b) what is the profile of these citizens without jobs; (c) what are the challenges of placing them in jobs; and (d) whether employers have adjusted to the tight labour market by making jobs more attractive with better working conditions, salaries and benefits packages.
Mdm Speaker, although the quarterly unemployment rate for citizens rose slightly from 2.8% in December 2013 to 3% in March 2014, it remains low and has been largely stable for the past three years.
The slight increase in quarterly unemployment rates could reflect higher job search activity, as higher wages, more vacancies, and greater availability of flexible work arrangements in a tight labour market encourage more citizens to enter the labour market to look for jobs. As the job search process may take some time, some slight increases in quarterly unemployment rates are expected. Slight fluctuations in the unemployment rate are also to be expected across quarters and we have seen that varying from quarter to quarter over the last several years. But, in the main, it revolves around this plan.
The profile of the unemployed is varied. About one in two of the unemployed citizens in March 2014 were aged 40 and over. In terms of educational qualifications, about half had Secondary education or below. About one in five is long-term unemployed.
The key challenge faced in helping some of these unemployed Singaporeans find jobs is in ensuring that their skills remain relevant to evolving industry needs. To help them upgrade their skills, we provide substantial subsidies for the upgrading of skills through our Continuing Education and Training (CET) system. Jobseekers receive between 70% and 90% course fee subsidies depending on the type of courses, and we also have the Place-and-Train (PnT) programmes to help jobseekers find jobs and pick up the skills they need in their new jobs. Individuals have a part to play, too – to learn new skills, and be open to different job opportunities in growing industries. And, of course, we need to maintain a strong and vibrant economy to create quality jobs for Singaporeans.
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Second, for economically inactives who are returning to the workforce, being able to find a job that allows them to balance their work commitments and family and care-giving responsibilities is a key concern. We have recently enhanced the Work-Life Grant under the WorkPro scheme to provide greater support to employers to implement and sustain good work-life practices, such as flexible work arrangements.
MOM will continue to monitor the unemployment rate closely and work with tripartite partners to help unemployed Singaporeans find jobs.
Madam, we have heard companies saying that they are closing down or restructuring because of the tighter supply of foreign manpower. Can I ask whether this has also resulted in more Singaporeans losing jobs and this could be one factor why the unemployment rate for citizens has been rising? My second question is whether the Minister is concerned that there might be a looming problem of structural unemployment as our industries continue to restructure to higher value-added companies?
Mdm Speaker, as a result of restructuring, it is inevitable that some companies merge and consolidate; some will move offshore, some may close. In terms of data, while we do have companies closing, we do find that there is a net formation of companies.
To follow on with the second question, what is important is: are we generating sufficient jobs for Singaporeans? While we have individuals who may transit from one sector to another, jobs are being created, opportunities are being created. So, that is a plus point. The next step that we need to take is to equip workers with relevant skills so that they are able to take on these new jobs. For those workers who are laid off, and for those who are looking at switching sectors, that is where our continuing education and training efforts come in to help them.
Upstream, our education system needs to equip our students who are entering the job market with skills that are in demand by industries. So, that is being done. We have relatively low youth unemployment.
The last step really is to help facilitate job placements. That is what WDA does, along with close collaborations with tripartite partners. That is the system that we have in place to support all segments of our workforce.
By and large, while we have frictional unemployment and you see variations from quarter to quarter, we do have fairly low unemployment rates in Singapore.
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Order. End of Question Time.
[Pursuant to Standing Order No 22(3), provided that Members had not asked for questions standing in their names to be postponed to a later Sitting day or withdrawn, written answers to questions not reached by the end of Question Time are reproduced in the Appendix.]
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