Singapore Reduce working hours by 20%
A country can create additional jobs by reducing the regular working hours. Singapore may have to adopt this approach some time in the future. 

If the regular working hours is reduced by 20%, the employer can employ 20% more workers to do the work. 

The actual increase in jobs may be less than 20%, as some of the existing workers are not fully productive. 

The workers may have to suffer a reduction of 20% in their wages. They have to tighten their belt and reduce the spending. Alternatively, they can use the free time to do some part time work to earn an additional income. 

Some can afford to live on the lower wage. They have more free time for their families, hobbies, sports, health or leisure activities.

Some employers may not reduce the wages by 20%, if they have to be competitive to retain their workers or if they can afford the higher cost. 

The employers have to employ additional workers to do the work. This will create job opportunities for the school leavers (or the unemployed youths) or the unemployed (i.e. job losers). 

Singapore has a special challenge in implementing this policy, because we have a fairly open door towards the employment of foreign workers. We have to tighten this policy, so that the additional jobs are available for the unemployed locals. 

We have to prepare for this possible change in the future, i.e. a reduction in working hours. 

Tan Kin Lian

 

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