‘Involuntarily unemployed’ can get monthly payouts by going for activities that boost job chances

SINGAPORE – People who lose their jobs involuntarily, such as those who are retrenched, can soon qualify for monthly payouts while they search for work, by tapping a new “activities-based” support scheme.

Some $200 million will be set aside for the SkillsFuture Jobseeker Support scheme, which is slated to be rolled out in mid-April.

Eligible job seekers can apply for and receive payouts of up to $6,000 over six months if they complete a set of employment-related activities, such as going for career coaching and job-matching services, said Senior Minister of State for Manpower Koh Poh Koon in Parliament on March 7.

The scheme is expected to benefit about 60,000 people a year, which accounts for more than 60 per cent of those who are involuntarily unemployed, he added.

Besides retrenchment, people may find themselves unwillingly out of work because of dismissal or termination of employment due to illness, injury or an accident, and company closure.

“Job seekers will be guided to complete meaningful activities like attending a career fair, updating their resume and going for career coaching,” Dr Koh said, adding that these activities are based on research with job seekers.

They can also make use of various support services offered under the scheme, such as career coaching by Workforce Singapore (WSG), SkillsFuture courses and career fairs.

Dr Koh, who was speaking during the debate on the Manpower Ministry’s budget, noted that the scheme is “more than just financial payouts and a job”. “It includes a simple and easy framework to guide job seekers along the activities that they should embark on to equip themselves to find a job and re-enter the working world with confidence.”

To qualify, job seekers must have been unemployed for at least one month from the last day of employment before receiving the payout.

They must also have earned $5,000 or less a month on average for the duration of their previous employment within the last 12 months, and cannot live in a property with an annual value more than $31,000. This is because the scheme focuses on lower- and middle-income people.

Those who qualify can receive $1,500 in the first month, which tapers down to $1,250 in the second month, and $1,000 in the third. They can receive $750 a month for the remaining three months.

The payouts will stop once the unemployed person finds a job.

Some activities that could enable a job seeker to qualify for the first payout include:

If the person does not secure a job in the first month, he can take up the following activities, among others, to qualify for the second month’s payout:

More information on the application process and qualifying criteria will be released ahead of the scheme’s launch in April.

Dr Koh recalled instances of workers who shared with him their feelings of loss – not just of income, but also of identity and purpose.

“Being retrenched can have a profound emotional impact, often triggering a mix of shock, fear, anger and even shame,” he said.

Dr Koh added that the scheme should not be viewed in isolation but as an “added boost” to support the unemployed. Job seekers from households with financial difficulties may also receive additional social assistance from ComCare based on their needs.

For example, if an unemployed worker undergoes long-form training while looking for a job, he can apply for both the Jobseeker Support scheme and the SkillsFuture Level-up Programme.

He can receive up to $21,000 – comprising $15,000 in training allowance and $6,000 in job seeker scheme payouts – over a six-month period.

A “well-structured job-seeking process” providing career facilitation support can help workers regain their confidence as they navigate the job market, he noted.

Separately, Dr Koh highlighted the benefits of joining the Polaris programmes, where employed individuals can receive personalised career guidance from certified career coaches. Polaris has benefited more than 620 workers since it started in November 2023. The programmes are available at a fee of $40 or $90.

“Over 90 per cent reported gaining clearer direction and higher confidence in planning their own careers,” he said.

Ms Joanne Wang, regional head of marketing at Timezone, signed up for Polaris to explore career planning and be a better manager.

Having been with the arcade chain for two years, the 40-year-old has had her job scope expanded to include public relations and communications work. More recently, she has taken on the challenge of setting up and leading an in-house creative team of four.

“Polaris gave me greater clarity on what I want out of my career and how to make it more meaningful and purposeful,” she said, adding that it also helped her discover her interest in working with people.

“To be a better leader, one of the key skills I needed to develop was coaching. That understanding led me to pursue formal coaching training, which has since helped me become a more effective and empathetic leader.”

Manpower Minister Tan See Leng said in Parliament on March 6 that more can be done to help workers pursue lifelong learning, noting “formal education alone is not sufficient”. He referenced the Organisation for Economic Cooperation and Development’s Survey of Adult Skills, which found that Singaporeans’ literacy skills declined as early as in their mid-30s.

“Career Health SG is our commitment to empower Singaporeans to develop meaningful and resilient careers amid economic changes,” he said.

He noted that employers may also be unsure how to guide their employees in their career journey.

As announced by Prime Minister Lawrence Wong in his Budget statement

on Feb 18, and reiterated by Dr Tan, around $200 million has been set aside to scale up the NTUC Company Training Committee Grant to help companies conduct more employer-led training that leads to formal qualifications.

Dr Tan spoke of how Ms Rachel Lee, a tax adviser at BDO tax advisory, has benefited from the grant when her firm introduced a centralised data platform with a smarter and faster workflow, automating manual tasks like data collection and document preparation. This has enabled her to focus on providing clients with personalised support.

The new job seeker scheme adds to the slate of other programmes available, which include those for people returning after a career break, such as services offered by NTUC’s e2i career centres, and WSG’s Career Conversion Programmes and Mid-Career Pathways Programme.

“In all, these programmes placed more than 56,000 job seekers into jobs,” said Dr Koh.

“Through these efforts, we hope to empower our workers to achieve their career goals. Workers must also play their part to proactively upkeep their skills, regularly review their career plans and seize good opportunities at every stage of their careers,” he added.