NDR 2024: Singapore to aid involuntarily unemployed with up to S$6,000 but jobseekers 'must do their part' too

SINGAPORE: Almost a year since the idea of supporting the involuntarily unemployed in Singapore was first mooted, Prime Minister Lawrence Wong on Sunday (Aug 18) introduced a scheme to provide temporary financial aid to such individuals. 

In his first National Day Rally Speech, Mr Wong said the new SkillsFuture Jobseeker Support Scheme will focus on helping lower- and middle-income workers who have lost their jobs to “get through the setback and bounce back stronger”. 

The scheme, which was created in discussion with the National Trades Union Congress (NTUC) and the labour movement, provides a total of up to S$6,000 over a period of up to six months.

But Mr Wong said those receiving the support “must do your part too”, by going for training, career coaching and job-matching services.

"These are essential investments that you need to make in yourself to find better jobs," said the Prime Minister. 

“This is the essence of our renewed social compact. We will have your back, we will stand by you; but you too must take responsibility for your actions, and make an effort to pull yourself up."

Mr Wong said Manpower Minister Tan See Leng will provide more details about the new scheme.

Mr Wong first raised the idea of unemployment support in September last year, before speaking about his considerations in implementing such a scheme during his Budget speech in February.

On Sunday, he said that the government has been studying for some time how to help those who become involuntarily unemployed for example through retrenchment or a company going bust.

“Some countries have unemployment insurance,” said Mr Wong. “But the experience has not always been positive, because after getting a generous benefit, the person might find it more attractive to stay unemployed than go back to work.” 

"That's why the government has always been wary about such schemes,” he said. 

At the same time, losing a job is a major setback which can “seriously destabilise workers and their families”, he added. 

“We have to do something – to lessen the strain on those who are affected.” 

The new scheme comes amid a spate of high-profile layoffs, with the number of retrenchments in 2023 more than doubling from the year before.

Firms like Lazada, Amazon, Temasek-backed online cashback platform Shopback, Ninja Van and Citi were among those announcing layoffs in recent times.

TRAINING ALLOWANCE FOR PART-TIMERS

Mr Wong also touched on the SkillsFuture Level-Up programme, first announced in February during his Budget speech.

The scheme provides all Singaporeans aged 40 and above with a S$4,000 SkillsFuture credit top-up. 

Under the Level-Up programme, a training allowance will also be rolled out from next year, providing up to S$3,000 a month for those who take time off from work to study full-time. 

However, Mr Wong noted that some might ask about support for those taking part-time courses. 

“They will continue to receive their salaries, of course, but it’s not easy to work and go for classes after that. There will also be expenses associated with training, like fees and books," he said.

“So we will extend some of the training allowance to those who attend part-time courses as well."

Mr Wong added that the Ministry of Education is working on this and will share more details when ready.