Unemployed PMETs – The vulnerable group neglected by Budget 2014
In fact, the Government Budgets in the past two or three years have been a series of subsidies and financial support programs to help out the vulnerable and under-privileged groups such as the low-income, the elderly, the disabled, and now the lifetime medical coverage for the Pioneer Generation.In the Budget 2014 recently announced by DPM Tharman Shanmugaratnam, the centrepieces of the Budget are the $8B “Pioneer Generation Package” which provides lifetime medical support, and the $3.6B Productivity and Innovation Credit (PIC) Scheme which aims to enhance the competitiveness of Singapore companies.
The Government also spares no financial efforts to encourage enterprises (especially SMEs) to enhance competitiveness via innovation and productivity.
However, the plights faced by the unemployed PMETs are still neglected by Budget 2014. These sandwiched group, perceived by many (including the Government) as capable of solving their own problems, are vulnerable to sustainable employment and financial difficulties as they are not rich enough to be financially independent, nor poor enough to receive Government assistance.
During the Budget announcement, DPM Shanmugaratnam proudly shared that Singapore’s Total Unemployment Rate (TUR) fell to 1.8%, literally full employment by international standards.
However, a closer look into the Labour Market Report for 3Q 2013 (published in December 2013 by MOM), we retrieved the following additional information:
- Among the 1.8% unemployed ( 48,300), up to 54% (25,900) were with Diploma and Professional Qualification (ie, PMET).
- More worrying, 33.7% were Degree Holders (16,300).
- 45.5% (22,000) of the unemployed were 40 years old and over.
- From 2012-2013, due to the effective government policies, the overall number of unemployed blue-collars ( Secondary Level and below ) dropped significantly by 23.4% (from 20,500 down to 15,700); but the unemployment rate for Degree Holders climbed 14.8 percent ( from 14,200 to 16,300).
- With almost full employment for fresh graduates, we can logically deduce that older PMETs (above 40) are facing great difficulties in securing jobs despite the almost full employment status claimed by the Government.
While those true talents drawing salary (usually above $8K) and blue-collar workers (usually below $3K) may not encounter much difficulty in employment due to their mobility and financial independence, and help via subsidies and tweaked labour policies in levy and quota, respectively, we encounter many real-life cases of middle-class PMETs (from $3-8K) losing their jobs and finding great difficulty in securing one.
Singapore is an open economy and to develop our country’s economic growth, we must open our door to welcome foreign talents who can contribute to our country’s growth; notwithstanding, we need to adopt moderation and to provide a fair employment opportunities for these unemployed intellectuals in the midst of midlife career transitions.
Some (especially for some policy makers who received their feedback from the employers) may reason that these unemployed PMETs have their own attitude problems that they have not accepted reality of change in economic restructuring; have not adjusted their expectations and are not willing to lower their demand for the re-training.
However, the truth is that there are many PMETs who have adjusted and adapted, but they were still not offered any jobs and they ended up as taxi drivers, property and insurance agents (a waste of their experience, talent and expertise).
Although the Ministry of Manpower will be implementing Fair Consideration Framework in August of this year, it is waiting to be proven its effectiveness as in theory, as long as the supply (universal supply) is far greater than the demand (local jobs available), there will be no bottomline to the salary package and job scopes. In other words, employers will be able to find someone who is less expensive and more capable than any Singapore suitable Singaporean candidates, as long as they have unrestricted access to the supply from the World.
Professionals / intellectuals are a valuable national resource. Their unemployment at such a huge number (16,300 of them) is not only a great loss of economic contribution to the country, their negative state of mind would also understandably affect the healthy living of self-esteem, their family and even the society.
While the Government has made significant efforts to help out the under-privileged and SME, I urge the Government to act promptly to help out these middle-aged PMETs by providing them a fairer platform to compete with the foreign talents.
I am no expert in HR matters but nonetheless, I venture to propose 3 suggestions for the relevant authority’s consideration:
- Staff training is one of the qualifying items under the $3.6B PIC scheme. I propose that the Government explore financial enhancements to the Scheme with job-matching opportunities for unemployed PMETs. MOM could match-make applicants with the PIC companies and to provide subsidies for re-training and job transition.
- Government to consider special budget provisions to assist the unemployed PMETs not only to retrain (I know there is an existing scheme provided by e2i) but to have effective job placement. As the largest employer, MOM can consider collating the job vacancies of all Government departments and statutory boards (especially for those positions currently contracted to foreign talents) and match-making them with recommendations on suitable candidates extracted from the large database on unemployed PMETs. Some years ago, MOE collaborated with Mindef and MHA on the re-employment for retiring army and police officers as “operations managers ” for schools. We can expand this program to help out our fellow Singaporeans.
- As the recruitment exercise is a fairly subjective selection process and decision making, MOM can explore to make it mandatory for the purpose of Employment Pass (EP) applications by some companies (especially those with a high proportion of EPs), MOM’s appointed representative (MOM can outsource this role to professional HR companies) to sit in the selection process. This arbitration will ensure that under the fair salary package corresponding with the job scopes, capable Singaporean applicants can compete with the foreign talents for the vacancy solely based on job competencies.
Unemployed professionals require no additional hand-outs or budget subsidies, but a gentle helping hand to give them the fair chance to compete with the foreign talents for the job vacancies.
While we enjoy a low unemployment rate with the current good economy performance, should it turn for the worse, I am afraid more PMETs will be among the first to be let go. For Singaporeans who were born here making this the place of their lives, I believe this is the minimum we have to do for them.
Edmund