But laid-off employees will need to 'make an effort' to return to work, says Prime Minister
The Singapore government has announced that it is extending financial support worth $6,000 to employees who have been retrenched by their employers.
Prime Minister Lawrence Wong unveiled the initiative, called the SkillsFuture Jobseeker Support scheme, during his National Day Rally speech on Sunday.
"If you lose your job, we will provide you with temporary financial support. How much? In total, up to $6,000, over a period of up to six months," Wong said in in his speech. "So, we will help you get through the setback and bounce back stronger."
Wong first hinted at a temporary financial support scheme for laid-off employees early this year, as retrenchments in Singapore more than doubled in 2023 due to reorganisation or restructuring within firms.
In his speech on Sunday, the prime minister said the scheme will focus on helping lower- and middle-income workers, who will also need to do their part to return to work.
"What should you do? Go for training, career coaching, as well as job matching services. These are essential investments that you need to make in yourself to find better jobs," Wong said.
"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."
Manpower Minister Tan See Leng will provide more details about the new scheme in due course, according to Wong.
Alternative for unemployment insurance
The prime minister said the new SkillsFuture Jobseeker Support scheme was launched following consultations with the Labour Movement and the National Trades Union Congress, who have been advocating for the programme.
According to Wong, they were initially concerned that individuals might find it more attractive to stay unemployed if they receive a generous benefit.
"That is why the government has always been wary about such schemes," Wong said. "That is why we searched for an alternative."
Re-entry rates for retrenched employees in Singapore dipped to 59.4% in the first quarter of 2024, largely due to their exposure to global economic headwinds, according to the Ministry of Manpower.
