The government’s views on the unemployment situation might be too sanguine
With Singapore in the throes of its worst ever downturn, the government seems to have gotten into the habit of implying that Singaporeans are complacent and choosy about employment opportunities, something exemplified by manpower minister Gan Kim Yong’s invocation to young graduates to take any job that is available – even if it happens to be a blue-collared one that they did not train for – several weeks ago.
Such a sentiment is not borne out by statistics. One indicator is a global survey published in April ranking Singaporeans as being the second-most dissatisfied group of workers worldwide, with just over half claiming to be satisfied with their jobs, which could be an indicator of how undemanding they are about job choice. A more telling poll conducted by the Institute of Public Study (IPS) in February indicated that 31% would “take any job regardless of pay” if they were jobless, with the respondents saying that they were prepared to take up to a 42% wage cut on average to get a job.
The IPS survey also showed that Singaporeans were anything but complacent: only a small proportion expected to rely on the government (7% of respondents) or welfare agencies (5%) to see them through the bad times, and Singaporeans on average had built up a reserve of 8½ months of savings for such contingencies.
The problem is not one of Singaporeans being choosy, but that jobs are genuinely getting scarce. The latest data from the manpower ministry show that the unemployment rate (unadjusted) for residents hit a five-year high of 4.4% in March. (Source: MOM). Already, this is almost 5 times the number of immediate job vacancies available at the Employment and Employability Institute.
Furthermore, the figure probably understates the actual economic pain. For one, it excludes those who have given up “actively” looking for work, which anecdotal accounts suggest could include quite a few older workers who were laid off and effectively forced into early retirement after not being able to secure other jobs. It also excludes those who are in “retraining” under the gamut of government-sponsored schemes: the prime minister said in his May Day rally that 80,000 workers (which is close to the current number of unemployed residents) from 1,300 companies will be participating in its SPUR retraining programme, which is a fair guide to the degree of under-employment in the economy.
Yet despite the worsening outlook, it seems that Singaporeans know that they should not expect much government help. 82% of the respondents in the IPS survey said that they had to rely on personal initiative rather than the government. Significantly, 62% said that the government’s measures have had no impact on them; even for those in the lower income groups, which the government was supposedly targeting with its measures, only 4 out of 10 said that they benefited, a figure not much higher than the overall average among all income groups of 3 out of 10.
That might come as a rude shock to a government that had seemed convinced that it was doing a good job of spreading largesse around. The IPS survey has given a hint of the pain threshold of Singaporeans: on the whole they are currently still cushioned by their savings as well as government re-training programmes, but if the economy does not bottom out fairly soon their patience might become sorely taxed.
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How much bitter pills will Singaporeans be able to withstand?
*tsk* in singapore context, the bitter pills is just like antibiotics,, it has been used for too long and it is starting to get wear out…the more they continue to give the bitters pills, the more resistant, rejection will occur…so it is a matter of time before it stop working…and that’s usually when Singaporeans wake up and lose their patience
Your article insinuates that the govt is oblivious to the pain being suffered by Singaporeans. That’s not fair to them. You can criticize the results of the policies but i dont think they are unaware that the general population is suffering.
Many have already lose their patience and they are wondering why election has not been called. Like they said, this people can hide but they cannot escape, judgement day will come, anyhow.
I think the training providers and employers are the winners here – not the job seekers.
I heard many training providers are springing up daily to get certified to be registered as WDA partners so that they can have a slice of the fat pie.
Singaporean job seekers continue to go for retraining without any job guarantee at the end. I have people who left their courses with certificates without any ready work available. Sad case…
This government always claims to be so smart and farsighted. Why are we blindsided this time? Where was the extra wing in our economy besides the manufacturing sector that was talked about ages ago? Where are the so-called high value added jobs that were supposed to have been created by this “extraordinaire” govt ? What great economic planners and strategists in the highly paid public service do we have! Can Mr Gan or Mr Lim Swee Say or Dr Ng give us concrete examples of blue collar and white collar workers who were retrained and who got higher pays in new jobs? After nearly 50 years under PAP, are we not regressing rather than progressing, to have to expect Singaporeans to work for less in lower value added jobs? Any moron can tell people to keep on downgrading your job, your homes, your pay, your life style to survive. The irony is: after near half a century, we are still nowhere above subsistence!!! Except for govt Ministers who contnue to draw obscene humongous salaries out of proportion to their performances, nobody is feeling the golden years!
To them welfare is a dirty word but they are paying themselves the highest welfare of million dollar salaries. It is another form of welfare disguised as salaries, I wonder what other perks they are feeding themselves while the lesser mortals are counting dimes for 3 meals a day.
What happened to our Swiss standard of living? Isn’t that one of their KPIs or does it apply to the elites only? Have we the natives been conveniently swept under the carpet?
Jobs are getting scarce, and the govt will have to work hard to encourage job creation. This remains to be seen, but I am optimistic.
There are some bright spots I think:
I know quite a few people who are doing well now because the biomedical sciences was developed. Just anecdotal, but I think the situation would be worst if that sector was not developed. At least we are not as dependent on electronic/manufacturing as we used to.
I think SPUR is a good plan, generally. Having 80000 people on SPUR is better then simply letting them go jobless, or simply doling out money for doing nothing. In the process this creates some jobs for trainers to cushion the economy. What’s so wrong with that?
Time to hold the PAP government fully accountable for mismanagement of the economy, the reserves and the country.
I still think the unemployment relief needs to be in place now as many PMETs continue to be retrenched. A safety net gives peace of mind to the unemployed to look for work without duress at home.
They will face much financial pressures from monthly household bills and essentially their mortgages. The hierarchy of human basic needs term the MAslow hierarchy will be severely tested here as we all feel threatened when we dont have food on the table or a roof over our head. Even the strongest will be affected somewhat by unemployment.
They will be bombarded by banks and service providers and unless they have alot of reserves they will be stressed out. Some may turn to loan sharks or worse suicide.
Marriages are also targetted to break up more during a recession as couple s struggle to stay afloat both financially and emotionally.
Those who emerge unscathed will be stronger in the long run. Let us hope we all belong to this category.
To describe Singaporean workers as choosy, complacent and having unrealistic expectations is both untrue and grossly unjust. Struggling to stay afloat in a tough economic environment due largely to predatory govt policies, not only are we left to fend for ourselves but we have to compete with the deluge of foreigners invited here to work. If anything, the labels “complacent” and “grossly overpaid” fit our “leaders” to a T!
I had read a book about unemployment, the economy and the pains of retrenchment, and it did say one thing that has had a big impact on my thoughts and it basically did make me re-ponder the claim that even with good times, retrenchment of jobs are necessary or that it would be easy for the newly retrenched to find jobs, w/o considering the physiological impact on the self-esteem of ordinary workers, especially men and women who are the main breadwinners of their families.
Anyway when it said that whether in good times or bad, if highly trained workers are forced to take jobs that are beneath their skill levels and are not earning as much as they should- in other words not earning the real wage rate that one worker should get according to his skills and experience- then if you add the maths all up, the lost wages and longer hours do have an impact on consumer spending, on productivity, and also socially as well.
That’s why the book said that it’s not good long term policy if the employment direction by the govt is to simply recommend white collar workers, old and young to take any job that comes their way, good times and bad. While its recognized that many will take a pay cut during bad times, its always prudent to restore the cuts or to restore some benefits given out by employers once the bad times have passed by. But if the pay cuts or benefits are not returned in bad times, and that these white collar workers remain in blue collar jobs, fighting it out with students for jobs that pay $5 to $10 per hour, then the country loses long term. White collar workers need to do professional work that pays well- because they play an important role economically and socially. Only when these guys are fully using their talents to their full capacity, together with all others, will the country’s own productivity and self-belief drive economic growth to better heights.
It is not about being choosy but certain degree of entilement. I used to think entilement was not good, but today I am not sure, it could even be a right. When students worked hard to attain diplomas or degrees in their choosen areas(cost ,time,ect), My expectation is that those companies requiring these skilled students should be provided with job opportunities(not asking for gurantee) inorder to become productive in their respective industries. Most FW and FT (personal view) are the only one still working in this economic down turn, those in the middle are in no man land with the new graduates and diplomas holders holding morgages and student debts and mouth to feed.
good luck to all.
I have been retrenched & remained unemployed for the last 4 months. It is a fact that my previous job has gone to a cheaper Filipino FT , courtesy of our PAP govt.
My own savings will eventually be depleted but I cannot touch my CPF until I am 62, courtesy of our PAP govt again.
Thanks but no thanks, PAP. I was just wondering when my savings run out, will I be another casualty for jumping the MRT tracks or jump down the HDB blocks that the PAP govt has built.
For the past two decades, there was a belief that the free market is the best way to determine the types of jobs that are needed. This belief has turned out to be wrong. The free market did create many jobs in the financial sector – which did not add any real value, but only led to speculation and inflating an asset bubble. These jobs have now disappeared, and many people are being retrenched.
To make matters worse, the consumers are now cutting down on non-essential expenditure. Those involved in the market for real goods, such as cars, houses, and other products, are also affected. Jobs have also been reduced considerably.
It may take a long time for the global economy to recover and new jobs to be created. What will the people do in the meantime?
During the Great Depression of the 1930s, the US Government created jobs, such as getting people to clean up the forests. These jobs may appear to be not really useful, but it did get many people to be employed and their spending helps to move the economy. More importantly, there is confidence, which adds a further impetus to the recovery.
I believe that jobs have to be created in the public sector, funded by public money. US President Barack Obama is adopting this approach, with advice from his economists. I think that his approach will work.
In the case of Singapore, we will have to wait for the global economy to happen. I am not confident that the Job Credit scheme or SPUR retraining scheme can create the necessary jobs. Anyway, SPUR does give some money to the unemployed people, which is good in itself. Hopefully, they can learn something from the training programmes, even though it might not result in any job.
I have written in my blog on the types of jobs that the public sector can create to get people to do useful work. I hope that some of these suggestions will be implemented one day. http://www.tankinlian.blogspot.com.
To RS on May 5th, 2009 10.55 pm,
The author thought the gov is unaware of the people’s suffering and his conclusion was based on observations. You stated that you think that the gov knows and understand the people’s suffering. Could you kindly elaborate what lead you to your opinion?
From my personal perspective, millionaires who have 100% job security, whose incomes are peg to the highest earner at anytime (i.e. whichever sector is booming at the moment) — and thus are not under threats of any industries’ cyclical swings, whose jobs cannot be snatched by FTs, whose retirement are taken care of by pensions (sometimes multiple pensions running concurrently even as they remained employes, etc PM pension, Minister pension, BG pension) and whose job is secured regardless how poorly you have fared on it (Mas Selamat), would find it difficult to relate to the man on the street and understand their sufferings.
Most S’poreans will take being unemployed as a loss of face. So, if they being choosy abt jobs can only indicate that the salary is too low to survive on given our high cost of living. it is not helped by the relentless onslaught of foreigners who are willing to take on any job with their lower standard of living in their home country. Unless we have living standards like China, then we can compete on their terms. Likewise, our leaders shd be paid salaries comparable to those of other 3rd world countries. So, stop giving the crap abt S’poreans being choosy, try living the life of the average S’porean and then they will know the discontent.
A minimal wage policy may actually remove alot of the employment grosses here.
In Australia, there is a minimal wage policy in palce i.e. even a cleaner earns around $2K a month. Suffice to say, one food court can only employ two to three cleaners due to the high cost of employing them to do menial work. Here, one sees ten to twelve cleaenrs in a small foodcourt and half or more are foreigners.
A construction workers there earns around A$3k as many Aussies shy away such low end tough job. The bluer the colalr the more the job pays in Australia as they find it difficult to hire workers there. They don’t have much hiring choices like ours and FWs are only hire if the companies can show proof that they have advertise for the past 6 mths and no one suitable is hired. Work permits are only given to hard core jobs like hair dresses, chefs, nurses which continue to be in short supply.
A minimal wage policy also forces employers to employ astutely as one needs to tie in his performance with the minimal wage paid. This may in fact drives away alot of the current hiring bias here when employers can employ a FW for $1800 replacing an expensive worker who costs him around $3k.
I can only say that FWs will be a thorny issue here and unless the govt resolve it, many people will stay discontented while jobless as many locals are being replaced by FWs here.
Dear Roy @16: Like to clarify my point, perhaps it was not clear.
If the govt is unaware of the suffering, they would not even be implementing any policies at all. They would be like a country like Zimbabwe where the leaders do not care what is happening to the people.
My point was that they are aware of the downturn in the economy and have tried to bring out measures like Job Credit Scheme and SPUR to retrain the workforce/ keep jobs. As Mr Tan @15 has pointed out, these are just ways to tide us over. (Mr Tan, BTW I liked your post and it pretty much wraps up our current situation). Likewise, the govt is not under any illusion that these policies are the cure-all.
Whether you believe such policies are the right way to go is another issue. I for one think they need to do more.
To TIM @ 12
Could you tell us the title of the book please? Will be interested to read
see this article
http://in.reuters.com/article/domesticNews/idINL554338120090505
Bahrain scraps foreign labour sponsorship scheme
Well, maybe both roy and RS has their own point. However,RS, i doubt the reason why our dear leaders are doing this is because they feel the suffering, but is most probably because they don’t want to lose their iron rice bowl…the doctor lily neo fiaso was a good example of how align they are with those that are stuck bettwe a rock and a hard place.
To #14.
I feel your pain. I too am wading in the same boat. It’s not the performance or experience that counts, it’s only the bottom line that matters.
To RS on May 6th, 2009 12.06 pm
Thank you. I see your point about how the fact that the government is implementing some policy could suggest they are aware of the people’s suffering.
I, however, remain unconvinced. I have no doubt that there are some in the parliament who understands the sufferings of the poor, but the truth is there are many who are oblivious. I think a certain Mr Palmer told the media that he wasn’t aware that poor people exist in Singapore when he was interviewed during the last election. The lesser mortal remarks by Charles Chong, Dr Teo’s elitist defense of the Town Council during Lehman Brother saga further reinforced my opinion that too many of the people’s representatives have no clue what a peasant’s life is like. If only we have more of the Lily Neo and the Siew Kum Hong.
I would like to suggest some other reasons that may result in the implementation of these policies. These are hypothesises and may be a tad cynical, but after years of economic growth at all cost without concern of the rich-poor divide have made me a cynical citizen. I present them below:
- The Ministers bonus is linked to GDP and some of these policies are in place to ready us for the GDP spurts that will maximise GDP growth and inevitably fatten their wallets.
- At the end of the day, they still need to appease the voters. Their policies could be implemented to “earn” votes. This is similar to why Low TK and Chiam ST’s wards are not given the public funds available to upgrade their wards, even though the aged in their aging estates may be suffering and need the upgrade more than a relatively new town like Tampines. If they implement policies due to empathy, wouldn’t some $ be given to Opposition’s ward?
I am aware I may seem terribly negative, but I hope we can have a good discussion so readers may see both side of the coins and make up their own mind.
You are absolutly right Tim@12….
Our govt is kind of one which creates short-term curves after short-term curves.
They are readjusting all the way and changing as things come along and go.
The only certainty is change. In a way such a policy works…however, over a long time…there might be unhappy people, who have fallen out and are falling out.
A more comprehensive social approach must be drawn like how they do their URA planning on infrastructure for Singaporeans.
Then we will be able to all move forward…or we will be all stuck…I was waiting for this economic disaster and finally it has arrived. This will be the real test for the govt.
Their past policies will come to huant them and the future policies must be tops, or trouble all out.
This time, the rest of the countries Singapore lean on is also in trouble. So our dear leaders must Innovate. It is now their turn or they will be replaced by the people. tough times for everyone.
Aiya they might as well supplant the entire Singapore population with FWs lah. Not only are they less ‘demanding’ for pay, they also remit money and create cashflow, but they are also less able to stand up for their rights because they’re contractual citizens. Pleasantly pliable.
On another note, how do we escape the paradigm of the welfare state when we fight to protect Singaporean workers? -how- is the protection of Singaporeans over FWs justifiable in a way that the govt can accept?
P.S. Hmm, ‘lazy native’ sounds neocolonialist…
#14
Please do not despair. There is always a way out.
“invocation to young graduates to take any job that is available – even if it happens to be a blue-collared one that they did not train for – several weeks ago.”
so what do you call this. upskill or downskill. re-training or re-re-re-re-training for those blue-collared workers who may have to be replaced by highly qualified graduates who are willing (after the encouraging invocation) to do blue-collared jobs – which have to be VACANT in the first place. aiyoh, forgot leh, blue-collar alreadi taken by low cost FT leh, i thought the plan was to make country very competitive leh.
say this, say that. so confusing leh.
Seen it before. Lived through the previous recessions.
Had my share of unemployment during the 1984 slump.
Paid my taxes yearly and paid for everything else plus GST.
Had never qualified for any subsidies or assistance.
Worked hard, kept healthy.
Relied on myself, and my wife.
Now retired.
I do not, cannot even expect the Gahmen to keep inflation in check.
Have to speculate in stocks etc to ensure that my savings are not eroded by
poor fiscal management.
“17) Victor on May 6th, 2009 10.05 am
Likewise, our leaders shd be paid salaries comparable to those of other 3rd world countries.”
hello, what are you trying to suggest. for those saintly work that those godly figures are performing, do not expect them in return of their hard work to take peanuts as rewards, it will be an insult to their highly incorruptible minds. peanuts are for lesser mortals who need hungry-looking peanut eaters from foreign lands to make sure that peanuts are indeed worthwhile to fight for and so as to stay competitive.
Not so ironically, I found it at the Tampines NLB library when I was back home in SG. I can’t remember the name, but it was published in America and it was talking about the economic crises from the 80s up to 2002.
The basic gist about the impact of unemployment, not just economically, but socially, remains valid all the same. I hope you have some luck in finding the book. But it isn’t that thick; the cover is light-blue and the picture in front is a white collar worker- just sacked- carrying his cardboard box filled with his cubicle belongings- leaving the office.
Well, I doubt the economy will really recover in the sense that similar jobs lost can be regained. It’s a changing economy. Thus people do need to adapt to other careers…but no guarantee there either.
Also, FT are taking over the PMETs jobs. We keep hearing they’re here to fill in the lowly jobs left behind by Singaporeans but it’s not true.
The Singapore government acts like a corporation, they are profit minded. But that’s not how a government should think.
i went for most of the spurs course, not really helping.
“The Singapore government acts like a corporation, they are profit minded. But that’s not how a government should think.” – Doublespeak
I dearly wish the government WAS a corporation acting in the interests of its shareholders – the citizens.
“i went for most of the spurs course, not really helping.” – hopeless
Good luck, friend. You’re not hopeless.
hello, what are you trying to suggest. for those saintly work that those godly figures are performing, do not expect them in return of their hard work to take peanuts as rewards, it will be an insult to their highly incorruptible minds. peanuts are for lesser mortals who need hungry-looking peanut eaters from foreign lands to make sure that peanuts are indeed worthwhile to fight for and so as to stay competitive.>>
Lol.
On a serious note, even if we compare ours with 1st world countries like South Korea, Japan, the US, Canada, Australia and the UK, their leaders don’t earn that much and they have even more responsibilities, considering they don’t just run a city. They run cities and rural areas which are way, way bigger than our 600sq km of Singapore.
So why pay more when they have much less power and much less responsibilities? Their wages should be paid according to the scale of responsibility and scale of power- and while it should be reasonable, it shdn’t be too high. Hence millions is a waste of time; it even encourages too high for example, sales taxes, petrol et al. It only increases the living cost of ordinary people.
Why everything also must blame the government? Like the government owes you a living becos you voted for them. Havent they been doing very well for the past more than 40 years. It is not as if the rest of the world is not having difficulty but us alone. Take a reality check and dont just blame the government. Besides more than half the employers out there are not the government. DO you see any government linked company retrenching (apart from DBS, haha, that Josie woman’s company)? On the contrary I had dinner with a SIngaporean client who is so happy that for the first time in his life the government is paying his company lots of money so that he doesnt retrench people. Frankly, I have never heard of any government in the world doing that. If you have please let us know. ENquiring minds would like to know.
34) Reservist Corporal on May 6th, 2009 11.27 pm
“I dearly wish the government WAS a corporation acting in the interests of its shareholders – the citizens.”
Well, we know that the individuals running a corporation are more interested in lining their own pockets, as can be seen with all the scandals coming out from the banking financial crisis.
Paying themselves millions even when the bank is declaring bankruptcy…tsk tsk
In today ST, IMF reported that Singapore has the worst economy with GDP at
-10% and shrinking next year. How does our world highest paid political leader has to said about their performance? Do they still justify keeping their untouchable salary todate?
Since they pegged their performance against GDP to justify their filthy greed, can we now confirmed, based on IMF report, that Singapore govt is the world worst performers of the year, among asia and other region? If my eyes didn’t fool me, I think they are still distributing award to their own gang.
I pity Liu Guodong for not getting what he deserves for helping Singapore win a silver olympic medal. If he is Ho Jin, nobody would dare to paint him in such bad light and LBW would have personally bowed to him with platinum award. This country is getting rediculous and completely absurd in the way our systems work..
I believe that the Gov’t has done a lot, but it could do a lot more. But even if it does everything it could, I doubt it will be of much help. We are not China, USA or even Malaysia or Thailand, with rich hinterland to support in times like this.
Our country has no resources to maintain Swiss lifestyles – or even something remotely close. (That bullshit I’ve never believed!)
Those who are smart have emigrated elsewhere when they could qualitfy to. Of course that itself is no guarantee of a better life. But at least there is a chance.
And many heartlanders would rather suffer here than emigrate anyway, so its never an option.
So if you have no choice but to stay, than just too bad.
If you had a choice but chose to stay, good luck to you!
I had a choice, and tried to leave, but my family absolutely refused to support the move, so too bad for me too….
I will die a pauper here.
Pessimist: The grass is always greener on the other side. I have lived in Switzerland, and Australia and London. Now I live in HK. Sometimes, people so under appreciate the PAP. That said, I am not from the PAP. LOL. Just a mere observer and I give credit when due.
Dear Modernist, I did give PAP their due… didn’t I said that they’ve done a lot? My point is that the limitations of this island state does not bode well for its future. As to the greener grass, I would agree that it does not make much difference to a relatively well-off person. But think of healthcare for the average person in comparison with other countries….those who cannot afford B1, or even B2 class?
Apart from FWs, why is the government driving up the population by inviting foreigners to be new citizens? Think about it, those who want to be Singaporeans think highly of our system (or our government). Hence, the more new citizens we have, the more votes in favour of ……….?.
Is having a Singapore passport and a pink ic really that highly valued? Read on…
Pssst, want Singapore citizenship? Its disposable.
October 16, 2008
“If you hand out Singapore citizenship like cheap White Rabbit candy sweets to anyone who wanders along, don’t expect them to take it seriously or treasure it.
…so far two under its Foreign Talent Sports Scheme have ditched their Singaporean passports. Egmar Goncalves, returned to Brazil to settle with his family last year. In an interview towards the end of his S-League career, he noted that the money he had earned from football would buy him 7 houses back in Brazil, but only 1 condo in Singapore. The other is Croatian Mirko Grabovac who returned this year.
Isn’t it ironic that this government screams and shouts when Singaporeans break their bonds but remains so blasé when new citizens throw their passports back in its face? We demonise young Singaporeans born and bred who decide not to work in the civil service and yet we grin stupidly when these foreign talents give us the old heave ho! Something is very wrong with our values and priorities. Rejecting the opportunity to work in government is seen to be more offensive than rejecting our nation. How can this be right?”http://groundnotes.wordpress.com/2008/10/16/pssst-want-singapore-citizenship-its-disposable/
THURSDAY, NOVEMBER 24, 2005
The Value of Citizenship —- $5000? – the case of Melvyn Tan
“Although I think the primary problem lies with the Value of Citizenship, but the $5000 fine is really an insult to the many sacrifices made by many NS men all over Singapore.
The problem lies with the very low esteem and value of our citizenship.”
http://singaporealternatives.blogspot.com/2005/11/value-of-citizenship-5000.html
I am a Malaysian and despite the proximity and cultural similarities, most Malaysians that I know of who have taken up Singapore PRs do not opt for Singapore citizenships despite lengthy stays in the country.
http://www.singaporeexpats.com/forum
1,000 S’poreans give up citizenship each year
AN AVERAGE of about 1,000 Singapore gave up their citizenship each year in the last three years, said Home Affairs Minister Wong Kan Seng on Monday.
maybe b-cos tekan until no motivation?
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