Mismatch of Jobs Available and Skills of Persons Retrenched

Mr Leong Mun Wai asked the Minister for Manpower whether the Ministry has observed any mismatch between jobs that are currently available and the skills of persons retrenched in 2023 even though the ratio of job vacancies to unemployed persons remains high.

In any dynamic labour market, it is not uncommon for retrenched workers to encounter frictions before taking on new job opportunities. However, several indicators highlight that skills mismatch is not a major issue in Singapore.

First, the majority of our retrenched resident workers re-enter employment within six months. Based on the latest available data for the first three quarters of 2023, the re-entry rate was 64.8%, higher than or comparable to the annual rates in the pre-pandemic years of 2018 (62.9%) and 2019 (64.4%). Among those who did not re-enter employment within six months, some may have chosen to voluntarily leave the labour force for reasons, such as taking a break.

Second, the resident long-term unemployment rate (LTUR) remains low. As at September 2023, the LTUR was 0.7%, comparable to the pre-pandemic average (0.7%).

To help our workers upskill and reskill for new job opportunities, we have proactively assisted workers through Workforce Singapore's programmes, such as the Career Conversion Programmes and Mid-Career Pathways Programme. Such programmes play important roles in preventing retrenchments upstream and facilitating smoother transitions for retrenched individuals downstream.