RETRENCHMENT SITUATION AND PROJECTION OF JOB CREATION

[Mr Speaker in the Chair]

Mr Yeo Guat Kwang asked the Minister for Manpower whether he can give an update on the retrenchment situation and projection of job creation for this year.

The Minister for Manpower (Dr Lee Boon Yang): Mr Speaker, Sir, a total of 3,248 workers were retrenched in the first quarter of this year. In the second quarter, preliminary findings of our survey on private sector establishments with at least 25 workers show that some 5,600 workers were affected by retrenchments. Based on voluntary notifications by companies to the Ministry, the number of workers affected by retrenchments in the third quarter would be higher than the figures registered in the first and second quarters. For the whole of this year, the estimated number of workers who may be retrenched could reach 20,000. This is significantly higher than the figure of 11,624 recorded last year but is lower than the figure of 29,086 retrenched in 1998.

Total employment in the first quarter of this year rose by 23,210, seasonally lower than the 35,066 in the last quarter of 2000. However, based on changes in employment up to May and forecast of economic conditions ahead, total employment for this year is likely to be flat or slightly negative as against a sharp employment gain of 108,500 in 2000. Unemployment is expected to rise to around 4% by year end. However, the forecast of annual average unemployment for 2001 is lower in the range of 3% to 3.5% because of the generally lower figures in the first half as unemployment tends to lag economic activities.

Mr Yeo Guat Kwang (Cheng San): In view of such a high number of retrenchments, does the Ministry have any plans to help the retrenched workers?

Dr Lee Boon Yang: Sir, I will give the Member the answer when he asks the next Question.