MOM: 2 out of 5 workers retrenched in Q1 back in workforce by June amid weaker economy

The Ministry of Manpower (MOM) announced on Monday (7 September) that workers who were laid-off in the beginning of this year were able to secure new employments by June, despite weaker hiring sentiments.

Based on MOM’s weekly job situation report, it also added that those who were re-employed in new jobs did not experience sizeable pay cuts.

Despite an economic slowdown caused by the COVID-19 pandemic, a survey by MOM found out that companies continued to employ workers during the second quarter of this year, although at a much slower pace.

MOM carried out the survey in June among 2,160 Singaporeans and permanent residents who were retrenched early this year (Q1).

The survey discovered that 39 per cent of these retrenched workers were able to get jobs by June this year, which is slightly lower than that in the same period in 2018.

In 2018, 47 per cent of retrenched workers in the first quarter managed to secure new employment by June that year.

Out of those who got new jobs by June this year, 60 per cent of them did not take a pay cut of more than five per cent. Additionally, about half, which translates to 53 per cent, moved to a different industry.

If that’s not all, seven of them also found a job within a month.

MOM went on to state that professionals, managers, executives and technicians (PMETs), as well as those in their 30s and 40s were more likely to have found new employment, but did not elaborate further.

In August 2020, Deputy Prime Minister Heng Swee Keat revealed a new S$1 billion Jobs Growth Incentive (JGI) scheme to push for the hiring of locals. This new scheme is in addition to the existing Jobs Support Scheme (JSS) which provides wage support to companies.

Previously, after the Government announced JSS support for employers, netizens pointed out that financial support should have been offered to the retrenched workers as many companies have downsized manpower amid the circuit breaker.

Online users questioned the Government’s point of lending financial support to employers instead of helping the unemployed Singaporeans

“However, we recognise that despite companies’ best efforts and the coverage from JSS and JGI, some employers may still need to make adjustments to their businesses to stay viable, including conducting retrenchments,” said MOM on Monday.

“The Government will take active steps to ensure that workers who faced displacements would be able to find alternative employment and get back on their feet quickly.”