Getting Economically Inactive Singaporeans Back to Work

Mr Teo Siong Seng asked the Acting Minister for Manpower (a) whether the Ministry keeps a record of economically inactive Singaporeans; and (b) what measures are there to help this group of Singaporeans join the workforce to address the manpower shortage faced by local enterprises.

MOM does not keep a record of all economically inactive Singaporeans. However, we are able to estimate the numbers and profile of the economically inactive from the Labour Force Survey conducted on a sample of households in Singapore. In June 2012, there were around 418,000 residents aged 25 to 64 who were economically inactive. Out of these, four in five, or about 336,000, were women. The same survey also showed that 90,000 of all economically inactive residents aged 25 to 64 intended to look for a job within the next two years.

These economically inactive individuals represent a valuable pool of labour and talent that companies can tap on to address their manpower shortages. However, many economically inactive individuals have other responsibilities, and many often cite family and care-giving duties as reasons keeping them out of the workforce. For those who are able or wish to return to work, my Ministry has put in place a comprehensive set of measures to help remove and minimise the barriers that they face.

For instance, many economically inactive individuals would return to the workforce if there are part-time or flexible work arrangements. This will help them to better balance their family and work commitments. In this area, the Government provides generous funding support to help employers redesign jobs, put in place flexible working arrangements and hire the economically inactive. The Work-Life Works! (WoW!) Fund supports holistic implementation of flexible work arrangements, while the Flexi-Works! scheme helps employers defray some of the costs incurred when hiring economically inactive individuals, such as job redesign, consultancy, recruitment, training, absentee payroll and equipment costs. We will be refining these schemes in the coming year to

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provide stronger support to companies and economically inactive individuals.

Employers can tap on these funds to put in place work-life strategies. However, building conducive workplaces is not just about putting in place the necessary technology or physical infrastructure. More importantly, employers need to adopt a new and progressive mindset. To maximise the use of manpower, employers have to understand the needs of their staff, be prepared to offer customised working arrangements, and have flexible working arrangements entrenched in their HR policies and company culture.

At the same time, economically inactive individuals who wish to return to work also need to have the skills required by employers. The Singapore Workforce Development Agency (WDA) provides generous funding for all individuals, including the economically inactive, to upgrade their skills and improve their employability. Individuals who need more assistance to improve their job readiness can also sign up for WDA programmes, such as Workfare – Skill Up.

We will continue to work closely with our tripartite partners to help reduce the barriers to re-entering the workforce and to help employers tap on this pool of manpower.