Singapore Government’s Effort To Support Local Workforce

Singapore’s unemployment rate has risen to an unprecedented level in the midst of the Covid-19 pandemic. Overall unemployment in the second quarter of 2020 was 2.9 per cent, up from 2.4 per cent in the previous quarter. Unemployment rate for Singaporeans and permanent residents was even higher, at 3.9 per cent in the second quarter as compared with 3.3 per cent in the previous quarter. This means, as many as 90,500 residents were out of jobs as of June 2020. You may consult your econs tutor Singapore in your econs tuition Singapore class the various economic implications of a high unemployment rate.

To ensure more job opportunities for local workers, the government has announced a slew of new policies and measures. In discussion with your econs tutor Singapore in econs tuition Singapore, explain the benefits of these policies and measures.

Higher Salary Requirements For Foreign Workers

Effective from 1 September 2020, criteria for Employment Pass and S Pass have been updated to ensure that priority will be given to local workers, especially PMETs. The minimum qualifying salary for Employment Pass applicants is increased to S$4,500, from S$3,900 previously. The minimum qualifying salary for Employment Pass applicants in the financial sector will be further increased to S$5,000 from 1 December 2020. Other conditions include a good university degree and professional qualifications or specialised skills, among others. Older and more experienced candidates in their 40s need even higher salaries to qualify, which are usually double the minimum qualifying salary. To understand the implication of a higher salary requirement, you may sign up for econs tuition Singapore with a reputable econs tutor Singapore.

Similarly, minimum qualifying salary for S Pass applicants has been raised to S$2,500 from S$2,400., effective from 1 October 2020. Existing policies on levies and quotas remain unchanged. To find out more about foreign worker levies and quotas, you may contact Mr Edmund Quek, principal econs tutor Singapore of Economics Cafe Learning Centre. Economics Cafe Learning Centre is the best econs tuition Singapore centre.

Jobs Support Scheme And Jobs Growth Incentive

The tightening of Employment Pass and S Pass criteria is in addition to the Jobs Support Scheme and Jobs Growth Incentive aimed to encourage hiring of local workers. The Jobs Support Scheme offers a government subsidy of up to 75 per cent of local workers’ gross monthly wages capped at S$4,600. Duration and level of such support vary from employers to employers depending on which sectors they operate in. You may refer to other articles published on www.economicscafe.com.sg to learn more about the Jobs Support Scheme. You may also visit the website to find out more about Mr Edmund Quek, the best econs tutor Singapore and his econs tuition Singapore.

A new Jobs Growth Incentive worth S$1 billion will also be introduced in support of local workforce. Employers who increase their local worker headcount in the next six months will have up to 25 per cent of their salaries subsidised by the government for one year. The co-payment by the government will be doubled to 50 per cent for local workers of 40 years old and above. In consultation with your econs tutor Singapore in your econs tuition Singapore class, explain why a higher government co-payment is offered for older workers.

Disadvantages Of These Support Measures

The above-mentioned measures, designed to support local workforce have their disadvantages. First, it may worsen the labour shortages in select sectors due to lack of such talents in Singapore. Second, it may make it harder for local employers to fill undesired jobs. Last but not least, it may lead to wage inflation and hence increase the cost of hiring for employers. With guidance from your econs tutor Singapore in econs tuition Singapore, discuss other possible disadvantages.

In closing, the well-intentioned new policies and measures will serve the purpose of ensuring more employment opportunities for local workers. However, they may also reduce Singapore’s competitiveness in attracting quality talents from the rest of the world.

Linda Geng

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