Singapore is set to roll out a new unemployment support initiative aimed at assisting workers who have been laid off or become involuntarily unemployed. Prime Minister Lawrence Wong announced the plan during his National Day Rally speech, where he also touched on key aspects of the nation's economy, education, and housing policies.
The initiative, named the SkillsFuture Jobseeker Support scheme, is specifically designed to help lower- and middle-income workers. It will provide financial assistance of up to 6,000 Singapore dollars ($4,561) over six months, contingent on certain conditions. Wong emphasized that the qualifying recipients must engage in training, career coaching, and job matching services during this period. He stated, “These are essential investments that you need to make in yourself to find better jobs.”
The scheme marks a significant shift in Singapore’s approach to unemployment support. The city-state, historically resistant to the idea of unemployment insurance, has long prioritized self-reliance over welfare. Singapore currently lacks unemployment benefits, and Wong’s announcement reflects a cautious yet progressive step toward providing financial assistance while ensuring that citizens remain motivated to seek new employment.
Workforce Singapore, the agency under the Ministry of Manpower, explained that the scheme targets Singapore citizens who previously earned an average monthly income below SG$5,000. Eligible individuals who actively seek new employment and meet monthly activity goals will receive payouts, with a maximum benefit of SG$6,000 over six months.
The move represents a departure from the principles established by Singapore’s founding prime minister, Lee Kuan Yew, who firmly rejected the notion of a welfare state. Since Singapore’s independence in 1965, successive leaders, including Goh Chok Tong and Lee Hsien Loong, have upheld this stance, avoiding the introduction of unemployment support.
However, Wong noted that Singaporean officials have been studying unemployment policies in other countries, evaluating the effectiveness of financial support for those who are involuntarily unemployed. He expressed caution about the potential downsides of unconditional unemployment insurance, stating, “Because after getting a generous benefit, the person might find it more attractive to stay unemployed than to go back to work. That is why the government has always been wary about such schemes.”
In crafting the SkillsFuture Jobseeker Support scheme, Wong highlighted the government’s commitment to finding an alternative to traditional unemployment insurance, akin to how the Workfare scheme was developed as a more sustainable solution than welfare. Workfare, introduced in 2005, supports low-income workers by supplementing their income and pension fund contributions, provided they remain employed.
Wong assured that the new scheme would offer a safety net for those who lose their jobs, while also emphasizing personal responsibility. “We will have your back, we will stand by you; but you too must take responsibility for your actions, and make an effort to pull yourself up,” he said.
The Ministry of Manpower is expected to provide further details on the implementation of the SkillsFuture Jobseeker Support scheme in the near future.
(Source:www.scmp.com)
The initiative, named the SkillsFuture Jobseeker Support scheme, is specifically designed to help lower- and middle-income workers. It will provide financial assistance of up to 6,000 Singapore dollars ($4,561) over six months, contingent on certain conditions. Wong emphasized that the qualifying recipients must engage in training, career coaching, and job matching services during this period. He stated, “These are essential investments that you need to make in yourself to find better jobs.”
The scheme marks a significant shift in Singapore’s approach to unemployment support. The city-state, historically resistant to the idea of unemployment insurance, has long prioritized self-reliance over welfare. Singapore currently lacks unemployment benefits, and Wong’s announcement reflects a cautious yet progressive step toward providing financial assistance while ensuring that citizens remain motivated to seek new employment.
Workforce Singapore, the agency under the Ministry of Manpower, explained that the scheme targets Singapore citizens who previously earned an average monthly income below SG$5,000. Eligible individuals who actively seek new employment and meet monthly activity goals will receive payouts, with a maximum benefit of SG$6,000 over six months.
The move represents a departure from the principles established by Singapore’s founding prime minister, Lee Kuan Yew, who firmly rejected the notion of a welfare state. Since Singapore’s independence in 1965, successive leaders, including Goh Chok Tong and Lee Hsien Loong, have upheld this stance, avoiding the introduction of unemployment support.
However, Wong noted that Singaporean officials have been studying unemployment policies in other countries, evaluating the effectiveness of financial support for those who are involuntarily unemployed. He expressed caution about the potential downsides of unconditional unemployment insurance, stating, “Because after getting a generous benefit, the person might find it more attractive to stay unemployed than to go back to work. That is why the government has always been wary about such schemes.”
In crafting the SkillsFuture Jobseeker Support scheme, Wong highlighted the government’s commitment to finding an alternative to traditional unemployment insurance, akin to how the Workfare scheme was developed as a more sustainable solution than welfare. Workfare, introduced in 2005, supports low-income workers by supplementing their income and pension fund contributions, provided they remain employed.
Wong assured that the new scheme would offer a safety net for those who lose their jobs, while also emphasizing personal responsibility. “We will have your back, we will stand by you; but you too must take responsibility for your actions, and make an effort to pull yourself up,” he said.
The Ministry of Manpower is expected to provide further details on the implementation of the SkillsFuture Jobseeker Support scheme in the near future.
(Source:www.scmp.com)
