REDUCTION IN UNEMPLOYMENT

REDUCTION IN UNEMPLOYMENT

7.

Ms Sylvia Lim asked the Minister for Manpower (a) whether the reduction in the number of long-term-unemployed from 2003 to date includes those not necessarily employed, such as those undergoing training, those who have given up the job search and those affected by other such factors; and (b) how much of these other factors contributed to the reduction in unemployment.

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Dr Ng Eng Hen: By definition, as adopted to conform with international standards, the long-term unemployed excludes those who are economically inactive, such as those pursuing education or training, or choose to retire or stay at home due to family responsibilities. In recent years, the proportion of the economically inactive – i.e. those who are not looking for jobs - has actually fallen as more chose to enter a growing job market. The economic inactivity rate in June 2003 was 37% but in June 2006, had actually fallen to 35%*.

The improvement in long-term unemployment rates reported recently for Singapore are due to good economic growth. As a result, more people are able to find jobs quicker and are now working. Compared to 2003, the employment rate in 2006 had increased by about 2%. A summary of the statistics is in Table 1.

** Table 1: Resident Employment Rate, Long-Term Unemployment Rate and **

** Economic Inactivity Rate, 2003, 2004 and 2006 (As at June) **

|

2003: |

2004: |

2006: ---|---|---|---

Long-Term Unemployment Rate (%): |

1.5

|

1.7

|

0.9

|

|

|

Employment Rate (%): |

|

|

Aged 15 & Over

|

59.5

|

59.6

|

62.1

Aged 25-64

|

71.8

|

72.3

|

75.5

|

|

|

Economic Inactivity Rate (%): |

|

|

Aged 15 & Over

|

36.8

|

36.7

|

35.0

Aged 25-64

|

24.0

|

23.6

|

21.3

|

|

|

Resident Discouraged Workers: |

|

|

Number

|

7,300

|

6,100

|

6,000

As a % of Economically Inactive

|

0.7

|

0.6

|

0.6

As a % of Labour Force (Inclusive of Discouraged Workers)

|

0.4

|

0.3

|

0.3

Source: Labour Force Survey, MOM

Notes:
(1) Employment rate refers to the proportion of residents in the specific age group who are employed.

(2) Long-term unemployment rate refers to the proportion of the resident labour force (i.e. employed or unemployed) who have been unemployed for 25 weeks or more.

(3) Economic inactivity rate refers to the proportion of residents in the specific age group who are not in the labour force (i.e. neither working nor looking for work).

• Data pertains to residents aged 15 & over. For residents aged 25-64, the economic inactivity rate has declined from 24% in June 2003 to 21% in June 2006.

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(4) Discouraged workers are persons outside of the labour force who are currently not looking for a job because they believe their job search would be in vain. Reasons cited for being discouraged include: (1) Believes no suitable work available; (2) Employers’ discrimination (e.g. prefer younger workers); or (3) Lacks necessary qualifications, training, skills or experience.

(5) Conceptually, a person can be classified as employed, unemployed or economically inactive. As such, the sum of employment rate and economically inactivity rate will not necessarily add up to 100%.

(6) June Labour Force Survey was not conducted in 2005 due to the conduct of the General Household Survey by the Department of Statistics, MTI.

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