Jamus Lim argues why Jobseeker Support Scheme is the PAP’s version of unemployment insurance

SINGAPORE: Associate Professor Jamus Lim, Workers' Party Member of Parliament for Sengkang GRC, has offered his take on the SkillsFuture Jobseeker Support Scheme (JSS), which he describes as the People’s Action Party's (PAP) equivalent of unemployment insurance.

The JSS, unveiled with more details during Prime Minister Lawrence Wong’s National Day Rally speech on 18 August, has sparked comparisons with the Workers' Party's own long-standing proposal for redundancy insurance (RI), first introduced in its 2006 manifesto.

In a 12 September Facebook post, Assoc Prof Lim emphasised that the WP had been advocating for a redundancy insurance scheme for almost two decades, providing substantial details on it in their 2016 policy paper.

"We’ve been thinking about the issue for a while now," Lim stated, adding that the WP’s proposal has been part of global best practices for advanced economies for nearly a century.

Assoc Prof Lim dismissed the PAP’s argument that the JSS is not unemployment insurance.

He pointed out that the differences the PAP cites—such as JSS being tied to job-seeking conditions and funded from general revenue rather than payroll taxes—are inconsequential.

"Tax revenue is fungible, so it all comes from the people anyway," Assoc Prof Lim explained.

He argued that funding the scheme from general revenue might even make it less equitable, as it could potentially shift the burden onto non-workers to subsidise workers.

The Workers' Party's version of redundancy insurance, Assoc Prof Lim highlighted, envisioned a shared responsibility between employers, employees, and the government to ensure fairness and sustainability.

"We do believe in tripartism," he remarked, underscoring that society should bear the responsibility for protecting its workers.

One of the central points in Assoc Prof Lim's critique was that tying financial support to job-seeking efforts is standard in unemployment schemes globally, including in Singapore.

Assoc Prof Lim Addresses Concerns of Dependency, Calling Them Overblown

He acknowledged concerns that such a scheme might lead to dependency, but deemed these fears exaggerated.

"Most people, even in the West, do find value and meaning in some form of work," he noted.

In discussing the design of unemployment insurance systems, Assoc Prof Lim pointed to the importance of balancing the duration of support with the amount provided.

While too long a tenure or too large a payout could discourage a return to the workforce and allow skills to erode, too little would leave workers struggling to cover household expenses during critical periods.

The WP’s redundancy insurance proposal included a payout of 40% of the last drawn income for up to six months, which Lim described as a "solid-but-not-excessively-generous" sum.

Although this amount is lower than what is typically found in advanced economies, and the duration is shorter than the OECD average of one year, he highlighted that it reflects Singapore’s shorter unemployment spells of around two months.

Assoc Prof Lim also suggested the introduction of greater flexibility in accessing redundancy insurance funds.

By allowing the unemployed to "front-load" their payouts, households would have more breathing room to adjust their expenses during difficult transitions.

With the JSS set to be debated in Parliament, Assoc Prof Lim reaffirmed the Workers' Party’s commitment to advocating for expanded safety nets for Singapore’s workers.

"Whether you call it JSS or RI or something else, expanding the safety net for our workers is something that the Workers' Party will always be fighting for," he concluded.