Hiring support for 200,000 locals and training for up to 35,000 through Jobs Growth Incentive

Singapore

THE government is aiming to support the hiring of 200,000 locals while providing up to 35,000 traineeship and training opportunities this year through the next phase of the SGUnited Jobs and Skills Package, Deputy Prime Minister Heng Swee Keat said on Tuesday.

The wages of the 200,000 positions will be co-funded for 12 to 18 months by the Jobs Growth Incentive (JGI), which has been extended by seven months to September, costing the government S$5.2 billion.

This comes after the initiative saw an estimated 110,000 local jobseekers hired within two months from its implementation in September last year.

Observers told The Business Times they welcomed the target amid the weak labour market, believing it to be ambitious yet realistic.

"(It) will go some way in stabilising the domestic labour market and provide some reassurance that even if the growth recovery is in fits and starts, there will be policy support for job creation," said Selena Ling, OCBC chief economist.

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Irvin Seah, DBS senior economist, believes one key focus of this would be on the new cohort of graduates entering the workforce this year.

"They are in an exceptionally precarious position because they are entering the workforce when the labour market is still at the bottom and they are competing with a still-large number of residents," said Mr Seah.

Even so, the traineeship and training opportunities could act as a buffer until there are enough full-time positions, allowing jobseekers to remain occupied, economists said.

But beyond fulfilling these numerical targets, the longer-term challenge is creating permanent full-time jobs that properly match jobseekers' skills and aspirations, said Walter Theseira, an economist from the Singapore University of Social Sciences.

"We suspect that many people are in jobs which are less desirable, jobs which may not fit their skills or job which have poor career potential and this would especially be the case for many of the Covid-19 management jobs, like safe-distancing ambassadors," said Assoc Prof Theseira.

Christopher Gee, head of governance and economy at the Lee Kuan Yew School of Public Policy, said this is especially the case for displaced workers - such as those in sectors hard hit by the pandemic - and it requires collective effort from government agencies, career counsellors, employers and jobseekers to find the right fit.

"It's not just getting them a job but getting them a new career," said Mr Gee.

On the bright side, local workers "now have the opportunity to look at the gaps" in the market to ensure their employability," said Jaya Dass, managing director of Randstad Singapore.

Recruiters said many of these new positions are likely to be in growth areas like technology, logistics and healthcare.

This comes as companies continue to accelerate their digital transformation efforts, while lockdowns and remote working have promoted e-commerce, which has in turn boosted the logistics sector, said Wendy Heng, associate director of sales and marketing, healthcare and supply chain at Robert Walters.

Meanwhile, the government is extending its wage support for sectors that have been hardest hit by Covid-19.

The Job Support Scheme (JSS) will continue for six more months for firms in the aviation, aerospace and tourism sectors - with 30 per cent wage support from April to June and 10 per cent, from July to September.

With the air travel industry expected to recover only by about 2024, according to the International Air Transport Association, observers told BT this support is likely insufficient and may eventually be extended.

Acknowledging that preserving the aviation sector is of national interest to Singapore, Mr Gee said support may eventually become very targeted rather than having "blanket relief measures" that continue to be rolled over. He added: "The danger then is that you may create a sort of entitlement, almost a creation of a zombie company that just runs on handouts given by the company."

Firms in retail, arts and culture, food services and built environment, will receive a 10 per cent wage support from April to June.

Calling this a "good-to-have but not crucial", Mr Seah said the low level of support could be because these industries have "recovered significantly but are not back at pre-Covid-19 levels".

Overall, the JSS extension will cost S$700 million.

Meanwhile, S$133 million has been set aside for the Covid-19 Driver Relief Fund to support taxi and private-hire drivers, while S$45 million has been committed for the extension of the Arts and Culture Resilience Package and Sports Resilience Package.

To support more companies to move earlier in raising their retirement and re-employment ages, the Senior Worker Early Adopter Grant and the Part-Time Re-employment Grant are getting a bigger budget allocation of over S$200 million.

Nurses and other healthcare workers can look forward to better salaries as well.

KEY POINTS

• Jobs Growth Incentive to support hiring of 200,000 locals
• Job Support Scheme extended for three to six months for hard-hit sectors
• More pay for nurses and healthcare workers; continued relief for taxi and private-hire drivers, older workers and those in arts, culture and sports sectors