EMPLOYABILITY OF OLDER WORKERS (Plans and programmes to enhance)

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EMPLOYABILITY OF OLDER WORKERS:

(Plans and programmes to enhance): The following Question stood in the name of Mdm Ho Geok Choo -

11.To ask the Minister for Manpower in view of the stronger economy (a) whether the wage restructuring efforts and CPF cuts have enhanced employability of older workers; (b) whether there are plans to tackle the long-term unemployment of the older people, and if so what are they; (c) whether there is any focused programme to promote the idea of self-employment, and if so, what is it and its result; (d) how is the Government reaching out to help the unemployed old and working poor aside from the efforts of the Workforce Development Agency; and (e) how can the Government's effort be made more visible and to leverage jointly with the efforts of other non-government agencies.

Mr Charles Chong (Pasir Ris-Punggol): Question No. 11, Sir.

The Minister for Manpower (Dr Ng Eng Hen): Mr Speaker, Mdm Ho asked about older workers. Allow me to give some figures. The re-employment rate of

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workers from 40-49 years old as at first quarter this year was 51.5%. This isthe national average. However, the re-employment rate of those above 50 remains lower than the national average. This is partly because some older workers withdraw from the labour market when they lose their jobs. The long-term unemployment rate - this is defined as someone who has not found a job six months after he has lost his previous job -for older workers above 50 yearshasrisen above the national average. It is 2.3% in the first quarter of this year, compared to the overall rate of 1.5%. So, yes, those above 50 are finding it difficult to be re-employed.

In this context, wage restructuring,changes to the CPF for older workers, which Mdm Ho asked about, were necessary measures to ensure that our workers, especially the older ones, remain cost-competitive. In particular, moderating seniority-based pay systems, where older workers get paid more than younger workers for doing the same work was important. The changes to CPF contributions for older workers should also be seen in this context. These changes, correctly incentivise companies to employ, reward and retain workers based on their performance regardless of age. And, therefore, even as the economy recovers, companies need to continue with efforts to restructure their wage systems.

Beyond wage restructuring, the Singapore Workforce Development Agency (WDA) adopts a multi-pronged approach to help older workers get jobs. To encourage employers to employ older workers, we administer the People-for-Jobs Traineeship Programme (PJTP). As at July 2004, the programme has benefited 18,500 older workers.

A second area that WDA is focusing on, which Madam Ho had asked about, isself-employment. The Self Employment Training (SET) Programme waslaunched

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in 2002, and this programme provides specific skills such as analysing business opportunities, sales and marketing, finance and accounting, human resource management and legal aspects of establishing a business. To date, some 6,829 Singaporeans have been trained under this programme. Recently, WDAalso launched the Retail Incubator Training Programme aimed at training Singaporeans to operate their own push-cart retail business and over 600 Singaporeans registered for the programme.

We are continuing tohelp lower-skilled and older workers through training. Members may have heard ofFLOW, which is Functional Literacy For Our Workers, which we help workers who had little formal education to quickly acquire the level of literacy required at the workplace. And, we will continue with suchwork-readiness programmes in addition to many Place and Train programmes.

We would also work closelywith employers and the human resource community to correct misperceptions towards older workers. Enlightened employers recognise the value that older workers bring through their loyalty, experience and maturity and that these workers could contribute significantly to the company.

Mdm Ho asked aboutnon-government agencies. We have been working very closelywith non-government agencies such asNTUC and the people sector,self-help groups and the CDCs, to increase our outreach to the unemployed andto provide employment assistance. We will continue to work with a range of agencies to increase our outreach to the unemployed as well as lower skilled and low wage workers, to help them maintain their employability through retraining and upgrading.