Singapore faces rising structural unemployment
September 2nd, 2009 | 
Author: From our Correspondent
Singapore faces the spectre of rising long-term structural unemployment as the economy recovers from the global financial crisis. Structural unemployment occurs when the skills of workers do not meet the needs of employers.
With certain sectors such as manufacturing and electronics lagging behind, Singapore workers will have to be retrained to be employable in new industries such as the gambling industry.
The government’s timely interventions in the form of job credit scheme has helped to keep retrenchments and unemployments to a minimum and lessen the impact of the recession.
However, some workers may find their life-long skills and expertise redundant in a different economic climate blighted by the relentless influx of cheap, foreign labor.
Latest data showed that the number of people unemployed for more than 25 weeks is rising. Official estimates put the rate of long-term unemployment among residents in Singapore at 0.8 per cent as of March this year, up from 0.4 per cent last year.
With no retrenchment benefits or minimum wage to safeguard the interest of workers, they will have to constantly upgrade themselves to stay irrelevant in Singapore’s competitive labor market.
The blue-collar workers will be hardest hit as their jobs, which are labor-intensive in nature can easily be taken up by foreigners willing to work for longer hours at lower pay.
Foreign workers make up almost a third of the population and their increasing numbers have led to concerns and angst among the locals.
Despite the prevailing sentiments on the ground that there are too many foreigners living and working on the island, the government shows no signs of reneging on its pro-foreigner policy to cut back on the numbers.
Foreigners drive up the prices of HDB flats which hit a peak lately. Still, the government insists that HDB flats remain “affordable” as Singaporeans use less than 30 per cent of their monthly pay to finance the mortage loan.
In view of the uncertainty ahead, Singaporeans should think twice before committing themselves to a long-term financial liability. Nobody is guaranteed a job for life in Singapore and one can find himself replaced by a foreigner the next day suddenly without prior warning.
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8 Responses to “Singapore faces rising structural unemployment”
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What have our Government to help Singaporean? Why there are so many foreign labor still coming into Singapore? Do MOM have a Standard to follow for enagaging of foreign labor? Example, “A” Company have to employ 10 Singaporeans, then can entitle to employ 5 foreign labors. If I am not wrong, there is such standard to follow. If MOM have this standard to follow, why there is still so many foreign labor being employed into Singapore? Do MOM a records, How many Singaporean actually be employed, how many Singaporean are unemploy. And base on the employment of Singaporean, does the foreign labor telly with the standard like the example of 10 Singaporeans for 5 foreign labors???????
There are 2 problems that MOM doesn’t want to tackle:
1) The present foreign worker quota is too liberal.
2) The foreign worker quota is not strictly enforced in the first place. MOM mostlt turn a blind eye to employers breaking the quota
Admin
This is a real good piece of work.
The cautionary thoughts…
“In view of the uncertainty ahead, Singaporeans should think twice before committing themselves to a long-term financial liability…”
IS TIMELY.
a LOT OF THE SO-CALLED HIGHLY-SKILLED, to their shocking surprise, may find my “talent” and lives thrown onto the industrial heap of waste and stuck in huge debt trap that has no escape route.
Hmm totally agree with the article.
One of the previous companies i was working in, i last heard that my seniors – those who contributed 20 over years of their life to the company – are retrenched. A lot of my colleagues – ranging from team leaders, project managers to engineers- are then replaced by “talents” from Philippines, Indonesia, Vietnam etc. They even took in foreign students.
And to consider the fact that, working in gahment sector…it’s tough to get a perm,you’ll always be contracted. There’s no such thing as “Iron rice bowl” nowadays.
Everything else is on the rise except for the salary range, especially in this downturn, which no doubt we need to accept this fact. I just can’t help feeling worried for friends who are still planning to get a flat, for i realized recently that my house now cost double of it’s initial price – over 2 years. My colleague bought a house (4-room resale flat) around my area (yew tee), i must admit that i was shocked when she told me it cost her around S$290-300k, at least a S$100k difference from my 5-room… and no, my area is min 10 mins away from mrt, and near the factories instead… *sighs*
1st we need to understand what it means.
To me, at least, something is Affordable when I do not need to Loan from others. That is, I can afford it with money i have.
the blog’s micropoll reads:
“Are HDB flats affordable to ordinary Singaporeans at present prices?”
To me, its not. If I borrow money and that is considered affordable, then by the same logic, can I say I can afford a lambogini by constantly borrowing money? This example is hypothetical for purpose of putting my message across.
Admin,
I wrote a fairly long and balanced post yesterday in response to the “76 year old woman scavenging for rubbish” post.
In it, I spoke about how skilled workers in Singapore and the world in general (even India and China) are enjoying general salary increases, while unskilled workers (due to their abundance) are seeing wage stagnation or even declines in real terms.
I don’t seem to be able to find that post now, and I think it would an appropriate response to your article here.
My post wasn’t even insulting, personal or demeaning to anyone. I hope that the admin does not censor posts that go against their views (I don’t even think my post went against your views, all I attempted to do was explain why unskilled workers in Singapore have third world salaries while skilled workers especially uni grads have after-tax pay on par with those in developed nations.
Could you please find that post and re-post it. Thanks.
Imported cheaper foreign labour replacing locals – Is this NOT
STRUCTURAL UNEMPLOYMENT of Singaporeans ALREADY AT WORK???
If the economy cannot withstand stress of international competition with shifting landscape, would it NOT be correct that the “STRUCTURAL UNEMPLOYMENT will remove also the imported “cheaper” foreign labour NOW replacing locals?
Is this some kind of a musical chair of SILENT ECONOMIC RESTRUCTURING??
Anyone any thoughts?
To the doc,
don’t mind me being Kaypoh, you can click sept 1 on calendar(below the today online RSS feed),click next page at the bottom of webpage (yesterday’s article was too many that temasek review had to create another pg),then you can find an article with the 76 yr old video.
I also replied (again being kaypoh) pls read my comment and see whether you have any comments thanks