SINGAPORE: A “tripartite level" effort is needed to support mid-career workers in their 40s and 50s, amid concerns over job security among these employees, said Trade and Industry Minister Chan Chun Sing on Tuesday (Mar 3).
“They have significant financial commitments as they provide for their families, often with school-going children and retired parents. Many of them completed their formal education more than 20 years ago, moved on to establish their careers in one company, or various, and have not had the opportunity to reskill and upskill,” said Mr Chan in his committee of supply speech.
AdvertisementAdvertisementThose who are employed now are worried if they would still have a job in the near future because of keen job competition, he added.
He cited 2018’s labour figures, in which only 58.6 per cent of resident workers aged 40 and above managed to re-enter the workforce six months after retrenchment, lower than the 70 per cent for those in their 30s.
“Those who have been retrenched are worried if they can re-enter the workforce and find a job that matches their skillset and pay expectations,” he said.
[h=3]READ: Budget 2020: Amid COVID-19 and slowing economy, ensuring Singapore remains ‘exceptional’[/h] AdvertisementAdvertisementSupport for them must be done at a "tripartite level effort" of “businesses offering more employment and upgrading opportunities; workers making an effort to reskill; the Government supporting businesses and workers in their endeavours”, he said.
“We are preparing for future jobs that do not exist now. The rate of technological change will only quicken. If we do not support our workers in refreshing and advancing their skills, not only will they lose employability over time, businesses will suffer - and our economy will lose its competitiveness,” said Mr Chan.
He highlighted three ways in which companies can play an important role in supporting this national effort – redesign, reskill and recruit.
In order to encourage businesses to redesign their jobs to create new opportunities for existing and new workers, they can turn to the enhanced Productivity Solutions Grant, which now includes consultancy services for job redesign.
Previously, companies were only allowed to use the grant to purchase infocomm technology solutions and equipment at a S$10,000 cap.
A financial incentive for employers to upskill their workers has also been introduced.
Under the new SkillsFuture Enterprise Credit, eligible employers will receive a one-off S$10,000 credit to cover up to 90 per cent of expenses for either enterprise or workforce transformation programmes.
To spur employers to develop their workers, S$3,000 of the credit will be set aside for job redesign and training purposes.
[h=3]READ: Budget 2020: More support for transformation of workforce, including SkillsFuture top-ups[/h]From April this year, worker outcomes will be included as a mandatory condition for companies that apply for the Enterprise Development Grant funding, Mr Chan said.
These outcomes may include wage increases, creation of skilled jobs for Singaporeans, job-redesign and worker training.
A hiring incentive will be given to employers who hire local jobseekers aged 40 and above through eligible reskilling schemes such as the professional conversion or place-and-train programmes.
For each eligible worker, the government will provide a 20 per cent salary support for six months, capped at S$6,000 in total.
“We are committed to sharing the benefits of economic growth with all Singaporeans and to improve their lives,” Mr Chan said.
“When we grow the economic pie, we create good jobs.”
According to Mr Chan, more than half of Singapore’s local workforce is made up of professionals, managers, executives and technicians, or PMETs.
It is one of the highest proportion in the world, he said, adding that the number of PMET jobs continues to rise – from about 1.2 million in 2016 to 1.3 million in 2019.
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