RE-EMPLOYMENT OF OLDER WORKERS

Dr S. Vasoo asked the Minister for Labour (a) how many workers retired at the age of 55 years in 1987 and how many of them have been re-employed; and (b) whether his Ministry has other plans to encourage the re-employment of older workers.

The Minister for Labour (Mr Lee Yock Suan): Mr Speaker, Sir, in 1987 there were about 15,000 Singaporeans who were 55 years of age. Of these, about 9,000 were economically active. The majority of these 9,000 (perhaps 80% or more) continued to work after reaching age 55 with the same employers, with other employers or on their own. These are rough estimates, based on CPF data and the 1987 Labour Force Survey. My Ministry does not have precise data in the form requested, ie, the number of workers who retired at age 55 in 1987 and were subsequently re-employed.

Whilst the high proportion of workers who continue to work after reaching age 55 appears reassuring, it should be noted that our labour force participation rate falls rapidly with age for older workers. The participation rate is 58% for those aged 50-54, 41% for those aged 55-59 and 29% for those aged 60-64. In 1987 alone, about 5,500 workers of ages 55 and above retired from our labour force.

There are about 64,000 Singaporeans between ages 50 and 55 who are economically active. They represent about 58% of their cohort. If they all remain in the workforce over the next five years so that their participation rate remains constant at 58% instead of declining to 41%, there would be 11,000 more workers available to relieve our tight labour market.

It is clearly a waste of our scarce labour resources to retire our workers at age 55. The Government has set the lead many years ago by raising the retirement age to 60 for nearly all employees in the public sector. The private sector must now follow suit. Over the next two years, the CPF rate for workers above age 55 will be progressively reduced to their final rates. The lower rates will encourage the employment of older workers.

Private sector employers and their workers, or the unions representing them, should come to terms for raising the retirement age to 60 without further delay. My Ministry will assist wherever possible. We will closely monitor the situation and decide what further measures may be necessary to accomplish this task.

Dr S. Vasoo (Bo Wen): One supplementary question, Sir. Would a separate register be set up to monitor the future employment needs of retirees?

Mr Lee Yock Suan: My Ministry can look into this suggestion.