A potential lifeline for retrenched workers.
SINGAPORE — Retrenched workers may soon benefit from unemployment support as part of this year’s national budget, set to be unveiled on February 14.
According to a report, economists suggest that the support may be limited to a specific period of unemployment and targeted primarily at vulnerable workers. This type of assistance had been proposed by tripartite partners in 2021, as reported by The Business Times (BT) on Tuesday (January 30).
During the 2020 Budget debate in Parliament, Workers’ Party (WP) MP Sylvia Lim (Aljunied GRC) advocated for the implementation of unemployment insurance specifically for older workers who have been retrenched. Former Manpower Minister Josephine Teo responded by stating that the government would “keep an open mind” to the proposal, but characterized the current support for such workers as “more sustainable.”
The following year, a task force created by the National Trades Union Congress (NTUC) and the Singapore National Employers Federation (SNEF) recommended “unemployment income support” as part of their efforts to better assist professionals, managers, and executives (PMEs).
In November of last year, NTUC reiterated its call for this support. Manpower Minister Tan See Leng indicated that the government is “looking very carefully” at how to structure such a scheme, leading observers to speculate that unemployment support may be forthcoming in the upcoming Budget.
Additionally, Finance Minister Lawrence Wong suggested last month that training might be a prerequisite for this support, indicating that it should be framed as re-employment assistance. He stated that it is about providing financial cushioning to workers while encouraging skill upgrading and facilitating placement in new roles that match their abilities.
NTUC’s assistant secretary-general Patrick Tay emphasized the need for support targeted at PMEs in their 40s to 60s who are at risk of job displacement and struggle to find new employment. He advocated for “re-employment support” combined with job search and training initiatives, along with active labor market policies to incentivize individuals actively seeking to re-enter the workforce through employability camps, career coaching, and job interviews.
However, some analysts believe that Budget 2023 may be premature for announcing unemployment support. Walter Theseira, an associate professor at Singapore University of Social Sciences (SUSS), noted that the details still require clarification. He remarked, “I believe there is a case for unemployment support schemes, but the implementation doesn’t need to be rushed if the labor market is doing well.”
Ms. Lim, chairperson of The Workers Party, emphasized in Parliament in 2020 that the current economic climate underscores the potential benefits of such insurance as a stabilizing force for workers facing job disruptions. She warned that if citizens’ anxieties are not addressed adequately, it could lead to a rise in populism and nativism.
