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Jobs Situation Report 22nd Edition

Number of local hires supported by the Jobs Growth Incentive more than doubled to 270,000 by February 2021 More than 1,600 Persons with Disabilities hired by February 2021

1. As at February 2021, more than 270,000 locals have been hired by 42,000 businesses to expand their local workforce with support from the Jobs Growth Incentive (JGI). Nearly all (99%) of these businesses were small-medium enterprises (SMEs). About half of the businesses hired one to two local workers, while the remaining half hired more than two workers.

 

2. The JGI was introduced in August 2020 to support employers to expand local hiring. MOM last reported that from September 2020 to November 2020, 27,000 JGI-eligible employers hired 130,000 locals. Latest data for December 2020 to February 2021 showed that more than 15,000 new employers became JGI-eligible by expanding their local workforce.

 

3. Over the same period, MOM is encouraged to see the resident unemployment rate coming down from 4.8% (September 2020) to 4.1% (February 2021). Nevertheless, as unemployment remains elevated compared to before COVID-19, MOM encourages employers to take full advantage of the JGI to meet their manpower needs. The JGI has been extended to September 2021. Employers hiring eligible locals can receive up to $15,000 per hire. Those hiring mature workers, persons with disabilities, and ex-offenders from 1 March 2021 onwards will receive higher support of up to $54,000 per hire1. Employers who face hiring challenges should consider a wider range of jobseekers, and can tap on the SGUnited Jobs & Skills programmes to overcome mismatches.

JGI supported hiring across sectors

4. Four in ten of the 270,000 JGI-supported hires were in growth sectors, such as Wholesale Trade, Professional Services and Information & Communications.2 JGI also continued to support the recovery in the Food Services and Retail sectors – employers in these sectors hired one in five of all JGI-supported hires. A breakdown of JGI-supported hires in the top hiring sectors is provided in Chart 1.

 

[Chart 1]

 

JGI-eligible employers were successful in tapping on a wider pool of jobseekers

5. JGI-eligible employers have hired from a wide pool of jobseekers, including the unemployed, those from different sectors, and mature workers. Employers who focus on the suitability of the candidates instead of personal circumstances and characteristics that are not relevant to their job-fit will be more successful in finding matches. Such employers will also be able to make a fairer and more competitive job offer, to secure these candidates.

    1. Half of the 270,000 JGI-supported hires were not employed at the point of hire and about one-third had been out of work for more than six months.

       

    2. About six in 10 were previously employed in a different sector.

       

    3. Close to half of JGI-supported hires were mature workers aged 40 and above, and one-third were aged 50 and above.

       

    4. Six in 10 of the JGI-supported hires earned the same or higher wages compared to their previous jobs.

6. At the same time, progressive employers will find that there is strong financial support for reskilling and job redesign, to enable employers to access a wider pool of candidates.

  1. Under the enhanced JGI, eligible employers will receive up to 50% wage support for the first $6,000 paid to each local aged 40 and above hired between March and September 2021, for up to 18 months.

     

  2. Employers who need to reskill mid-career jobseekers can tap on the career conversion programmes under the SGUnited Jobs and Skills Package, which provide support for up to 90% training and salary costs.

     

  3. Employers can tap on programmes such as the Support for Job Redesign under the Productivity Solutions Grant to improve job quality. Funding support under this programme has been raised since Feb 2021, and is now up to 80% of qualifying costs, capped at $30,000 per enterprise till end-Mar 2022.

7. MOM also encourages jobseekers to stay resilient, keep an open mind to new opportunities and consider less familiar roles. Jobseekers who are open to switching into new job roles can approach Workforce Singapore (WSG) and NTUC’s Employment and Employability Institute (e2i), including through the 24 SGUnited Jobs and Skills Centres across the country for assistance.

8. The JGI has supported the hiring of more than 1,600 PwDs as at February 2021. This includes PwDs who may have been out of the labour force, but are now able to find a job with the support of progressive employers.

  1. Food services, Environmental Sciences and Wholesale Trade are the top hiring sectors and collectively accounted for slightly more than four in 10 of JGI-supported PwD hires.

     

  2. About six in 10 were not employed at the point of hire, of which more than half had been out of work for more than six months.

     

  3. About four in 10 were mature workers aged 40 and above.

9. The Social Kitchen (TSK) is an example of a progressive employer that benefited from the JGI. TSK believes in the potential of workers from diverse backgrounds, including PwDs and mature workers, whom they hire to operate their kitchens and café across the six branches.

  1. In November 2020, TSK hired Jessica Szeto, who has Down Syndrome, to work in their Jurong Bird Park branch as a service staff. Jessica’s duties involve packing food products to be delivered to customers.

     

  2. TSK’s success with employing PwDs come from investing in their training, to equip workers with useful skill, and providing a positive and nurturing environment where all workers in the café support one another as a team.

     

  3. The company works with employees to identify skill sets (e.g. digital skills, customer service) that they require, and puts them through training to pick up these new skills as they progress in their careers.

10. Since 1 March 2021, JGI-eligible employers who hire PwDs will receive enhanced salary support of up to 50% of the first $6,000 of their monthly salary over 18 months. In addition, employers of PwDs automatically receive the Enabling Employment Credit (EEC), introduced on 1 Jan 2021, on top of the JGI. The EEC provides wage offsets3 for each Singaporean PwD earning below $4,000 per month. Employers can also tap on various initiatives under the Open Door Programme to support the hiring, training and integration of PwDs into the workplace.

For More Information

 

11. Employers who would like to find out more about the JGI, please visit https://www.iras.gov.sg/irashome/Schemes/ Businesses/Jobs-Growth-Incentive--JGI-/.

 

12. Employers who need support to meet their manpower needs:

 

  1. Information about the SGUnited Jobs and Skills Programme, please visit https://www.wsg.gov.sg/SGUnited.html

     

  2. Employment support for PwDs, please visit https://www.wsg.gov.sg/programmes-and-initiatives/employment-support-for-persons-with-disabilities.html

     

  3. WSG’s programmes and initiatives for employers, please visit https://www.ssg-wsg.gov.sg/employers/programmes-initiatives.html

13. Jobseekers can tap on the following channels for career matching services:

    1. WSG’s programmes and career advisory and matching services, please visit www.mycareersfuture.gov.sg (QR code below) or call WSG’s hotline at 6883 5885.

       

    2. NTUC-e2i’s career coaching and job matching services, please visit e2i.com.sg/app or call NTUC-e2i’s hotline at 6474 0606 to book an appointment to meet a career coach.

       

    3. The SGUnited Jobs and Skills Placement Partners Initiative, please visit https://www.go.gov.sg/sguppi.

FOOTNOTE

  1. The EEC provides a 20% wage offset, capped at a maximum of $400 per month per employee, for employers of PwDs earning below $4,000/month. An additional wage offset for the first six months of employment, capped at $200 per month per employee, is available if the PwD has not worked for the six months prior to being hired.
  2. These refer to the Built Environment, Financial Services, Healthcare, Information & Communications, Professional Services, Logistics, Manufacturing, and Wholesale Trade sectors.
  3. Employers hiring eligible locals will be given up to 12 months of wage support of 25% of the first $5,000 from the month of hire. Employers who hire mature local workers (aged 40 and above), persons with disabilities and ex-offenders will be given enhanced support of 50% of the first $6,000 (previously $5,000) of gross monthly income for up to 18 months (previously 12 months).