Hiring may have slowed down in the second quarter of 2020, but workers who have been retrenched in the first part of the year are still finding employment with modest pay cut, study shows.
The finding was from a survey conducted by the Ministry of Manpower (MOM)’s Manpower Research and Statistics Department in June 2020, with 2,160 workers who were retrenched in the first quarter of the year.
The study showed that 39 per cent of workers retrenched in Q1 2020 found employment by June – 8 per cent lesser than the same period in 2018.
MOM found the results encouraging despite the drop.
MOM said: “This suggests that job prospects for retrenched workers held up, despite their job search taking place in a much weaker employment market and within the Circuit Breaker period during which many activities were disrupted.”
The study also revealed that seven in 10 retrenched workers who managed to find employment did so within one month.
PMETs and those in their 30s and 40s were also more likely to have found a job.
About 53 per cent of those retrenched possessed transferrable skills, enabling them to switch industries.
It is also worth noting that 60 per cent who found employment did not suffer significant salary reductions.
Two main schemes helping to retain and grow local hires are the Jobs Support Scheme (JSS) and the Jobs Growth Incentive (JGI).
The JSS was launched earlier this year to help companies retain workers amidst the pandemic. The scheme has so far disbursed over $16 billion in payouts, benefiting some two million local workers in more than 150,000 firms.
Deputy Prime Minister Heng Swee Keat announced in August the extension of JSS until March 2021, granting most eligible businesses a total of 17 months wage support for their workers.
Concurrently, Mr Heng also introduced the JGI scheme.
The $1 billion scheme will provide firms with salary support, enabling businesses who are still doing well to bring forward their hiring plans and grow their local workforce from September 2020 to February 2021.
However, MOM recognised that despite companies’ best efforts and assistance from both the JSS and JGI, some employers may still need to conduct retrenchments and adjust their businesses to stay viable
“The Government will take active steps to ensure that workers who faced displacements would be able to find alternative employment and get back on their feet quickly,” said MOM.
