The Jobs Growth Incentive (JGI) has helped to boost local hires, with some 27,000 JGI-eligible employers hiring a total of 130,000 local workers during September-November 2020 period, said the Ministry of Manpower (MOM).
According to the ministry’s Job Situation Report, released on 31 March 2021, eligible employers hired a median of two locals during the three-month period last year. This was higher than the median of one local hire by these employers in the same period of 2019.
Launched in August 2020 to support employers in expanding their local hires, the JGI – which funds employers hiring eligible locals by up to $15,000 per hire – has been extended to end-September 2021.
With effect from 1 March 2021, more support will be given to employers who hire mature workers, persons with disabilities, and ex-offenders. They can receive up to $54,000 per eligible hire.
About six in 10 of these employers hired one to two local workers, with the remaining four in 10 hiring beyond that number. 99 per cent of the employers who benefited from the JGI were SMEs.
Speaking at a company visit to Pacific Logistics Group (PLG), Manpower Minister Josephine Teo said: “Close to half of all JGI-supported hires were aged 40 and above, and one-third of the 130,000 were actually aged 50 and above.
“This is an indication that the strong Government support for employers hiring those aged 40 and above is having an effect on this group of employers.”
To make up for the fall in demand for their services, PLG restructured their business operations and ventured into new areas.
It expanded its workforce in areas such as food logistics and process innovation and hired new staff to perform roles such as IT Data Analyst, Logistics Executive and Warehouse Supervisor.
Mrs Teo said that the reason PLG was successful in its hiring was because they were open to considering those who have left the job market for a while, as well as jobseekers who were from different sectors.
“I would like to encourage employers to be as open-minded as PLG, look beyond the usual candidates and consider the value of providing them with training. This would also be helpful for employers to get started on your business transformation,” she said.
NTUC Assistant Secretary-General Desmond Choo said that the JGI has been helpful in helping companies expand their workforce even amid the turbulent landscape.
He said: “I think that is where JGI came in quite useful. It was something that the Labour Movement was very supportive of, and in fact, asked for it to be extended…
“It [JGI] is important because the economy is not exactly out of the woods yet. There are pockets of growth, but there is also continued lack of demand in the aviation, aerospace and hospitality sectors.”
On what employers and employees ought to do during these times of uncertainty, NTUC Deputy Secretary-General Cham Hui Fong said: “Companies should have proper career pathways and upgrading opportunities to attract job seekers, whereas job seekers ought to have a change in mindset, be agile and adaptable when taking on new job opportunities.”
