RATE OF UNEMPLOYMENT

Mr Chuang Shaw Peng asked the Minister for Labour what is the current rate of unemployment and whether this rate is rising rapidly and, if so, how the Government plans to address this problem.

The Minister for Labour (Dr Lee Boon Yang): Mr Speaker, with your permission, may I take both Question Nos. 3 and 4 together?

Mr Speaker: Yes.

Dr Lee Boon Yang: Sir, in 1997, 9,784 workers were retrenched. This was 11% lower than the 10,956 laid off in 1996. However, the number of workers retrenched has increased since the onset of the regional economic crisis. In the fourth quarter of 1997, 4,278 workers were retrenched, compared to 5,506 during the first three quarters of the year.

Total employment in Singapore increased by 122,800 in 1997 compared with 102,600 in 1996. The economy continued to enjoy full employment as reflected in the low unemployment rate of 1.8% for the whole of 1997. However, the last quarter of 1997 saw higher unemployment rate of 2% reflecting the increased retrenchments during that quarter. Fortunately, for most of 1997, we experienced strong employment growth and a tight labour market. Many retrenched workers found alternative employment quickly. Based on CPF's records, 79% of the local workers retrenched during the first three quarters of 1997 were re-employed by December 1997. The re-employment rate for older workers aged 50 and above was lower at 66%.

Among the workers who were re-employed, the average time taken to secure new jobs was 1.8 months after being retrenched. There was no significant difference in the average time for workers in the various age groups.

As a result of the on-going regional economic crisis and a less than vigorous rebound in certain sectors of the electronics industry, we saw more retrenchments since the beginning of this year. As the economy is likely to grow at a slower pace this year, we are also expecting more retrenchments for the rest of the year. My Ministry has therefore decided to set up a Tripartite Panel comprising representatives from EDB, NTUC, SNEF, PSB and the Ministry itself to assist retrenched workers seeking re-employment. Retrenched workers who are older or lacking in skills will have to make special efforts to acquire useful skills or upgrade their skills to improve their employability. The Tripartite Panel will also look into ways of assisting such workers.