MOM plans to increase worker support ahead of job market shifts: Jasmin Lau
She noted that while unemployment remains low, there are signs of slower hiring and “job hugging”.
Acting Manpower Minister Jasmin Lau announced plans to bolster support for workers, particularly those in job transitions, as the government aims to keep its schemes "fit for purpose". Despite a low unemployment rate and strong graduate outcomes, there are signs of slower hiring and "job hugging". Retrenchments have risen to the highest level since the pandemic, and the government expects this trend to continue.
The Ministry of Manpower (MOM) is watching the labour market closely over the next two quarters to identify sustained trends, but is already taking anticipatory action to support workers. MOM is considering measures to encourage employers to provide retrenchment benefits, such as restricting their access to foreign workers or granting access if they withhold benefits.
The government also plans to adjust existing schemes to better support workers, rather than creating new ones. Retrenchments are particularly affecting professionals, managers, executives, and technicians (PMETs), who now make up nine out of ten retrenched workers. The government will also look at strengthening legal protections for white-collar workers and promoting flexible work arrangements.
MOM is reviewing Singapore's main labor law to explore levers that would incentivize employers to pay retrenchment benefits.
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