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28 Dec 2019  (1189 Views) 
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Ministry of Manpower


A better way to help retrenched workers get employment
The govt spend $1 billion a year on the SkillsFuture fund to provide training for older workers to get new skills and to help retrenched workers to get re-employment. 

So far, the anecdotal evidence is that this training did not help many people to get re-employment. The money goes to provide general training that are "interesting" to the workers, but are not effective in helping them to get a job.

Is there a better way to use the money?

Here is my suggestion.

I suggest that $500 million can be set aside to provide a subsidy to employers of $50,000 per worker. This will benefit 10,000 workers a year.

The $50,000 can be used to give a subsidy of $2,000 per worker for 20 months and the balance of $10,000 to be used for specific training of the worker in the skill for that job.

It is likely that the small businesses will be able to offer well paying jobs to these workers, and enjoy the use of trained workers at a subsidized cost. It will be good for the small businesses and the workers. 

After 20 months, the employer is likely to continue to keep these workers who would, by then, be quite experienced in their work. If they wish to have additional workers to enjoy the subsidy, they should be required to continue the employment of the earlier workers who were employed under the scheme.

I believe that this approach will be more effective in helping the retrenched workers get re-employment at well paying jobs and to have the skills and productivity for these jobs.

Tan Kin Lian

Vote - do you like this approach?


 


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