Tough Road ahead for 45 and Older




A Discussion on Employment in Singapore


Unemployment statistics is probably one of the most closely monitored indicators of the labour market.
Labour market outcomes in June 2018 improved compared to a year ago. Employment has grown. The employment rate remained high for residents aged 25 to 64, and continued to rise firmly for older residents aged 65 & over. Over the same period, the resident unemployment rate moderated for both PMETs and non-PMETs. The real median income also continued to grow in the recent five years. MOM Report: Labour Force in Singapore Advance Release 2018

Employment is an emotive as it affects a person livelihood and standard of living. By seeking employment, a worker more or less accepts the notion of seeking a stable income through the provision of labour. 

Recent discussions on minimum wage, display of Government (G) statements on low unemployment vis a vis high number of job vacancies, calls for skill upgrade and advertisements by Ministry of Manpower (MoM) on their Adapt and Grow Scheme amongst the several other related employment issues such as availability of good quality work, staffing by foreign labour PMETs and calls for preferential treatment for native born residents. 

The discussion aims to provide clarity to those that are characterized according to the categories listed in Table 1.  It acts as a sounding board with making informed choices on future outcomes and serve to help with providing clear directional thinking and providing goals with alleviating lost self-esteem and personal hardship in the onward pursue of providing sustainable life style. 

Table 1: Categorisation of Unemployed, Persons outside of Labour Force, Discouraged Worker and Part time Worker

Labels /
Category
Not Working
Actively Looking for a Job
Available for work
Unemployed
Yes
Yes
Yes
Persons outside of Labour force
Yes
No
No
Discouraged Worker*
Yes
Yes
Somewhat
Part time Worker@
No
Yes
Yes
Source: Ministry of Manpower Youtube Video entitled “Who is unemployed ?"  
*A Discouraged Worker is one where there is mismatch either in skillset, experience, discrimination, suitability of work or lack of qualifications.
@Part time Worker is considered to be employed.

Being without work creates personal hardships. The loss of income results in less consumption and a lower living standardWhile this "work for reward" is universal for any resource, it is most important for labour force. Business owners often earn income from more than one resource. Thus a loss of income from one resource is not a total loss of income. Many workers, however, often earn income only from labour. The loss of income from labour might mean a total loss of income.

The personal hardships suffered by total lost of income affecting those in first 3 Categories of table 1 are of concern to G for reasons that are both in the common good and somewhat more selfish reason.
a)    In terms of the common good, they are members of society just like everyone else and deserve the opportunities to enjoy the fruits of a productive economy. An affluent society "should" be able to provide for everyone. In addition, social problems that cause personal hardships to other members of society tend to increase with the personal hardships including crime, divorce, suicides; and
b)   G concern with the personal hardships is more for selfish reasons. When the voting public is unhappy, they tend to vote against the incumbent and has a destablising effect from discontentment.

Anecdotes suggest general societal discontentment with regard to job opportunities, pay, hours of work along with other social aspects that accounts to the state of joblessness.  While the issue of employment covers all adults 15 years and above, this essay mainly looks at the employment prospects of Singapore Resident PMET of 45 years and older in seeking entry into the labour market as a new hire.

Most times the Unemployed will look first at G for cues to determine their employability and mobility. 

Concurrently, the job seeker submits job applications and search job databases for suitable positions against the backdrop of G (MoM) announcements that unemployment in Singapore is very low at 2% and that the market was awash with jobs.    

The process of consultation with a career coach both at LifeLong Learning Institute (LLI) and Employment and Employability Institute (e2I) would have begun.  It should be noted while LLI and e2i have well-meaning Career coaches, the efficacy of such consultation has very limited outcomes.  Career Coaches dispense general advice without specifics and often leaves the job seeker perplexed on what to do with their life and where to obtain their next stable income. The popular refrain would be for a job seeker to suss employment prospects from his personal networks.

Nevertheless, free preparatory courses are available at LLI and e2i in job interview and resume writing and it gives a renewed outlook and optimism to the anxious job seeker.

What is Unemployed?

To reiterate, we need to be clear on what constitutes unemployed before a discussion on joblessness takes place.  By definition, the International Labour Organistation (ILO) states that an Unemployed person is one that is: -

a)   Not working
b)   Actively looking for work
c)   Available for work.

MoM adopted an identical definition with the ILO which categorises joblessness as shown in Table 1.  However it does not distinguish the Unemployed into sub-categories e.g. first job seekers, etc..:-

a)   Employed: fully employed vs. underemployed, quality of employment (income, skills utilisation, job security, legal; social protection, etc.)

b)   Unemployed: first job seekers vs. persons with previous work experience, duration of unemployment, coverage by unemployment insurance, etc.

c)   Not economically active: degree of labour market attachment (e.g. discouraged workers)

From anecdotes left by the uninformed and ignorant, an unemployed person is one who is lazy and with no desire to return to the labour market.  This belief is unsatisfactory as one broad stroke has casted a pale on all job seekers and labelled them together with those unwilling to find meaningful taxable income work. Against “abundance of jobs” scenario it precipitates the impression that only the “unemployed” are those has no desire to contribute, are lazy and sponging on society.

G themselves does not spend any effort to dispel the misnomer since it is advantageous to continue to cite unemployment as 2% without the need to elaborate.  

However, the category of what constitutes as Employed should also be scrutinized for it being far too broad to the following extent:

a)   A Master’s graduate (PMET) with many years IT experience seeking full time employment but working as a taxi driver, security guard or a cleaner in a hawker centre would be considered gainfully employed. 

b)   Ad hoc work totaling 8 hours for the whole year as a casual, part time basis or by driving Private Hire Car and earning $200 per annum falls within the Employed category. 

Arguably this categorisation should be considered an aberration since any short-term work to supplement income understates the underemployment and unemployment figures even if seasonal adjustments were made.

The employment figures cited are agnostic of any correlation to age, last drawn salary, present salary, type of jobs, previous occupation, qualification, and nationality (local or foreigner - PR, S-Pass, E-Pass, Work Permit), by industrial sector or the period of unemployment.

In an encompassing tone, a former MoM minister said good quality jobs would be created since there is sectorial expansion in Technology and FinTech giving the impression that jobs are awash and there should be no difficulties with landing one.

However, entry into these sector is still a steep uphill for older workers of 45 years or older, some of the reasons are listed below :- 

a)   Stereotype older workers as being old-fashioned, less tech savvy, less committed and stubborn with outdated skillsets; 
b)   Insecurity and worry about being out maneuvered and their inexperience show up glaringly;
c)   Economy is not as rosy as claimed by the G, thus job availability is limited; and
d)   Foreign workers (including Msian) enjoy a cost competitive advantage over local workers all else being equal.

To elaborate, employers have inhibition with the physiology of older workers thereby putting PMET in a quadrangle of being unemployed to driving a taxi or other menial work to eke a living even if all things being equal.

The irony of this is it shows adaptability of the worker but the efficacy of WSG schemes of SkillsConnect or SkillsFuture (Work and Adapt Scheme) in its ability of job placement, talent management and retention. Additionally, popular media support the promotion of gig economy/ freelancing, food hawking, venturing into greenfields as alternate career choices. 

“Where’s the pride in a grad selling nasi lemak or driving Uber”,  quote from a statesman

While an older worker accepts that getting a job is very tough, G advertisements gloss over the fact that employers do not want to hire older workers. In contrast, G propagates that organizations were putting aside their prejudices and hiring older workers. The high cost of living and depletion of savings, GST increases and raising the retirement age amid media reports of job abundance further fuel the wrong impression that only lazy people are not working.  PMETs are then put in a spot when G weigh in of the lazy notion. 
                               
From a G stand point, a rosy economy will surely land an older worker a job since major initiatives such as SMART nation will entail resources.

But alas, this is not the case and one only wonders where high value work has gone to, or has the G been blindsided by industry on job potentials and the promise of providing good employment opportunities to locals. 

To elaborate, candidate selection process is at most times narrowed to just seeking complete matches to job descriptions instead of assessing a candidate ability to perform the job.  Hence when an identical match cannot be found, industry laments the lack of qualified personnel to fill the vacancy creating the vicious cycle in seeking foreign labour while excluding qualified local PMET for the vacancy.  Such is the situation leading to a pool of PMET becoming PHV drivers and performing other menial work as a means to an end.   

Observation suggests that G polls industry for job vacancies estimates. When the reported number of vacancies fall short of expectation, MoM approach industry to raise the number of vacancies.  However, industry may or may not revise the number of vacancies (industry may also not hire according to the declared numbers) and when a shortfall in vacancies persists, MoM will rely on their calculations and apportion the numbers required to support economic growth estimates.   

Based on the arguments as presented, we believe that being unemployed in Singapore do encounter stigmatization. Any unemployment rate should not be taken at its face value since the employment figures do not go far enough to explain the current job situation of older worker employability.  Further, G propaganda to appease job seekers who are over 45-years-old has limited appeal and function.   

In addition, Job seekers’ plight is accentuated by G policy in allowing foreign professionals entry into existing local industry when there is a ready pool of PMETs seeking work. These very same PMETs have no place to go and will face increasing cost of living issues. As far as we see, G have no sustainable idea on how to manage the existing pool of jobless PMETs. 

For the unemployed PMET we offer the following advise:

Take up WSG courses that allow yourself to be self-employed; 
G was singing praises of a Gig economy and how future jobs would be structured along the lines of casual and contracting work;

Pick up hobbies and exercise to help with your depressive state and growing frustration.  Exercise and hobbies help to keep the mind alert and active, it keeps the negative thoughts at bay;   

Spend carefully, remember to eat to live and not live to eat, expect periods of long unemployment.  Remember calamity may strike anytime during your unemployment and one medical episode will wipe out your savings. Additionally, household expenditure will go up due to inflation and GST rate increases.

Prepare to sell Nasi Lemak or Drive a PHV or other menial transactional type work.  Do not be surprised if the career coach asks you to consider being a cleaner or PHV driver and to source from your own network. He is being honest and not insulting you. Do not expect G to understand your problem.  G only provides you an avenue to rant and it ends there. 
    
Millenniums and Startups business models are mostly in software business, thus unless you have the absolute matching skills, they will not hire you even as you are prepared to take a substantial pay cut.

Keep yourself abreast with news and mix around for friendship and championship and sought their views on topical interest.

References

Yasmine Yahya, Managing the Gig economy, Dec 28, 2016, The Straits Times,
https://www.straitstimes.com/business/economy/managing-the-gig-economy-economicaffairs

Vivien Shiao, PME jobs, Gig economy top of the list, Mar 02,2017, The Business Times,
https://www.businesstimes.com.sg/government-economy/singapore-budget-2017/pme-jobs-gig-economy-top-of-the-list

Growing gig economy cushions impact of weak job market, Oct 6, 2017, The Straits Times,
https://www.straitstimes.com/business/economy/growing-gig-economy-cushions-impact-of-weak-job-market

Farhan, All Singapore Stuff, Employment shrank, but Straits Times says job prospects improving? Dec 14, 2017
https://www.allsingaporestuff.com/article/employment-shrank-straits-times-says-job-prospects-improving

Koh Jie Kai, Time to get tough on job discrimination, Jan 02, 2007, The Online Citizen
https://www.theonlinecitizen.com/2007/01/02/time-to-get-tough-on-job-discrimination-part-one/
https://www.channelnewsasia.com/news/parliament/videos/july/josephine-teo-on-job-matching-success-rates-of-government-10516122

MoM Singapore, Statement on Labour Market Developments, Sept 13, 2018
https://www.mom.gov.sg/newsroom/mom-statements/2018/0913-statement-on-labour-market-developments

Ng Huiwen, Laid off and seeking new job? Task force can help, Sept 20, 2018, 
https://www.straitstimes.com/singapore/manpower/laid-off-and-seeking-new-job-task-force-can-help

Danisha Hakeem ,2018-12-03,Prof Tommy Koh: Govt resistance towards implementing minimum wage rooted in “fake” ideological arguments
https://www.theonlinecitizen.com/2018/12/03/prof-tommy-koh-govt-resistance-towards-implementing-minimum-wage-rooted-in-fake-ideological-arguments/

David Sun, The Straits Times, 4 Dec 2018
https://www.straitstimes.com/singapore/neighbours-grisly-discovery-cough-syrup-was-blood-trail

Unknown, Former MP Inderjit Singh criticises Press Secretary Lim and asks Singaporeans to speak up, June 9, 2018, The Online Citizen
https://www.theonlinecitizen.com/2018/06/09/former-mp-inderjit-singh-criticises-press-secretary-lim-and-asks-singaporeans-to-speak-up/

Monica D. Castillo, Labour Force Framework: Concepts Definitions, Issues and Classifications, Nov 2011, 
https://www.ilo.org/wcmsp5/groups/public/---americas/---ro-lima/---sro-port_of_spain/documents/presentation/wcms_304686.pdf

AmosWeb Encyclonomic Webpedia, 10 Dec 2018, 
http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=unemployment+problems

MoM Singapore, How WSG, SSG are preparing Singaporeans for jobs of tomorrow, Forum, StraitsTime
https://www.straitstimes.com/forum/letters-in-print/how-wsg-ssg-are-preparing-singaporeans-for-jobs-of-tomorrow

CNA Insider, How Millennial Boss Think
https://www.channelnewsasia.com/news/cnainsider/how-millennial-bosses-think-11011904

Taha Khan, Zuuonline.  28 Dec 2018, 7 Jobs For The Over 60s In Singapore

https://www.channelnewsasia.com/news/business/singapore-q4-advance-gdp-slows-to-2-2-misses-expectations-mti-11078130

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