08/27/2024 | Press release | Distributed by Public on 08/27/2024 03:45
As announced by Prime Minister Lawrence Wong at the National Day Rally on 18 August 2024, the Ministry of Manpower will be launching the SkillsFuture Jobseeker Support (JS) scheme to help involuntarily unemployed persons bounce back from employment setbacks. Workforce Singapore (WSG) will be implementing this scheme from April 2025.
With the pace of economic transformation accelerating, workers may find themselves displaced, notwithstanding their efforts to reskill for new jobs. As part of the refreshed social compact under Forward Singapore, the Government will introduce the JS scheme to give greater assurance to displaced workers so that they will not face employment setbacks alone. In developing the JS scheme, the Government considered feedback from members of the public during Forward Singapore, the earlier recommendations for the Joint PME Taskforce headed by the National Trades Union Congress (NTUC) and the Singapore National Employers Federation (SNEF), and examined similar schemes implemented in other countries.
Easing financial pressure to give jobseekers more space and time to search for a good-fitting job
The JS scheme marks a paradigm shift in the Government's approach to unemployment. The scheme provides temporary financial support to ease the pressure on involuntarily unemployed persons to rush into a new, potentially ill-fitting job. With some peace of mind, coupled with support for job search, we aim to support involuntarily unemployed persons to find a job that makes better use of their skills and experiences.
The JS scheme will focus on lower and middle-income individuals (previously earning an average of $5,000/month or less), and on those facing more difficulties in their job search. Applicants must be employed for at least six months in the past twelve months prior to the application for support.
The full eligibility criteria can be found in Annex A. We estimate that around 60,000 Singaporean residents will be eligible for the scheme per year, which will account for more than 60% of involuntarily unemployed persons.
Payouts will be tiered, with higher payouts at the start
Eligible involuntarily unemployed persons will receive up to $6,000 over six months. To provide an immediate boost, we will pay out $1,500 in the first month of support and taper down the payouts thereafter (see Chart 1). Monthly payouts are capped at the individual's average monthly income prior to involuntary unemployment1. Once the individual successfully secures a new job, he will not be eligible for subsequent monthly payouts2.
To qualify for the JS payouts, individuals will have to do their part to actively search for a new job, such as applying for jobs, attending career coaching or participating in eligible training courses. The job search condition provides flexibility to individuals to customise their job search efforts. More details on the job search conditions will be shared closer to April 2025.
We will support involuntarily unemployed persons to bounce back. They can tap on the suite of employment facilitation and training support measures. This includes career coaching and eligible training programmes by WSG, SkillsFuture Singapore (SSG) and NTUC's Employment and Employability Institute (e2i). A list of the available employment facilitation support can be found in Annex B.
Financial support complements other training and social support assistance
The payout quantum is not sized to meet the needs of households facing financial distress as a result of a household member becoming involuntarily unemployed, as JS is not a social assistance scheme. For these households, they can receive support from other social assistance schemes, such as ComCare Short-to-Medium-Term Assistance (SMTA), GST Voucher, as well as cash payments and Community Development Council Vouchers under the Assurance Package (see Annex C).
Some jobseekers may want to undergo reskilling or upskilling to improve their career prospects. Those who enrol in eligible full-time, long-form training programmes under the SkillsFuture Level-Up Programme, or company attachments under WSG's Mid-Career Pathways Programme, may receive training allowances in addition to the JS payouts, if they meet the eligibility criteria for the respective schemes.
One-off concession for individuals who have been involuntary unemployed for up to 12 months
Individuals who have been involuntarily unemployed for more than six months in the past twelve months would ordinarily not be eligible, as the JS scheme is meant to encourage those who face employment setbacks to take immediate actions to re-enter the workforce and not delay their job search. However, when the JS scheme is launched in April 2025, we will provide a one-off concession for Singapore Citizens who became involuntarily unemployed on or after 1 April 2024 and remain unemployed.
1 E.g. if the individual was previously earning $1,200, they will receive $1,200 in the first and second months.
2 E.g. If the participant finds a new job in the third month, they will not receive the payouts for the fourth, fifth, and sixth months.