INCREASE IN UNEMPLOYMENT AND STEPS TO REDUCE IT

Mr John Ede asked the Minister for Labour and Welfare what is the estimated increase in the number of unemployed persons in Singapore since April 1955, and what steps are being taken to reduce unemployment.

Mr Lim Yew Hock: Mr Speaker, Sir, in answer to a similar question in this House in February 1956, I explained that accurate figures for the numbers of unemployed persons in Singapore are not available. For this reason I cannot state the number of unemployed persons in April 1955 any more than I can state the increase or decrease in the number since that date. As recently as last January I informed this House that a study of the various factors which affect employment in Singapore did not suggest that there had been any appreciable change in the unemployment situation during the year 1956. I believe that that still substantially represents the position today. However, I must inform the House that recent reports do seem to indicate a decline in employment in certain industries. For example, there has been a reduction of 10 per cent to 15 per cent in the numbers of workmen employed in the saw-milling and rubber packing factories. Employment in biscuit factories has declined by about 25 per cent. These changes appear to have been due to Federation of Malaya duties and smaller quantities of low-grade rubber imports.

The retrenchment of about 400 industrial workers at the Naval Base has been well publicised.

Information collected during the Labour Department's census of manual workers in employment at the end of March has not yet been fully compiled, so that I am unable to state whether there have been increases in other industries to compensate for the decrease I have mentioned. Members will appreciate that in a competitive trading centre like Singapore, there are inevitable ups and downs in particular industries. It may be that when the census is complete, it will show a contraction in the employment of manual workers over the last six months; but I am satisfied that the net change will not give rise to undue alarm.

Employment exchanges' records show counts of persons actively seeking employment assistance at various times as follows:

April 1955 - 7,031. April 1956 - 8,122. April 1957 - 8,074.

I am bound to point out that the figure for March 1957 was 8,858. Last month there was a sharp fall which will probably only be temporary, as a result of recruitment for census duties.

To sum up, there has probably been an increase in the number of unemployed persons in Singapore since April 1955, both as a result of school leavers coming on to the employment market and a recent fall in the volume of employment. I estimate that the total is of the order of one per cent of the total number of persons in employment.

The Government's aim is to pursue a policy of full employment. Public works are maintained at as high a level as resources of the building construction industry allow. These works not merely provide temporary employment for those engaged in actual construction, but permanent employment for those who maintain and operate the schools, hospitals and public buildings which are erected. Government is anxious to create the necessary conditions under which existing industries will expand and new industries can be attracted to Singapore. The Industrial Promotion Board has been set up to assist in this process.

Mr John Ede: With reference to the steps being taken to reduce unemployment, will the Minister state whether those longest on the unemployment register are given the first chance to train as census workers?

Mr Lim Yew Hock: Sir, I am not able to reply to this question without notice. I did not know this question was coming up. As far as the census work is concerned, it is left to the Registrar to take on people with qualifications. According to the system we employ in the Labour Department, those longest on the list are always given the first choice, but we do not direct any prospective employer as to how he should choose.