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Foreign worker influx slower than expected
Services sector helps drive 112,500 increase in total employment
By Kor Kian Beng
SINGAPORE created 112,500 jobs last year, with nearly half of them going to Singaporeans and permanent residents (PRs), according to the Ministry of Manpower (MOM) yesterday.
The remaining 58,300 jobs were taken up by foreigners, including 5,300 maids, who arrived to work here last year.
The foreign worker influx is a reversal of the decline of 4,200 in 2009, but is still lower than the 80,000 estimate given by Prime Minister Lee Hsien Loong at the National Day Rally last August.
Manpower Minister Gan Kim Yong said the fact that fewer foreigners came than expected earlier showed that efforts to reduce employers' reliance on them were paying off as bosses focused on raising productivity and hiring locals.
'We have to press on with this effort because we cannot become over-reliant on low-skilled foreign workers if we want to achieve sustainable and inclusive growth,' he said yesterday after a ceremony for retail assistants who had completed a training programme.
Mr Gan was asked by reporters to comment on MOM's preliminary figures, which show employment rose by 30,600 in the fourth quarter of last year.
Overall, total employment for 2010 increased by 112,500, powered by the services sector, which contributed 109,500 jobs. The total is a big jump from the 37,600 recorded in recession-hit 2009.
But Mr Gan poured cold water on employers' hopes that the Government would relax its foreign worker policy in the face of the tight labour market arising from the strong rebound in the economy.
He said he was aware of their anxieties, but reiterated that the policy was here to stay. 'If we are to relax (it)...we will encourage employers to once again go back to relying on foreign workers.'
Higher foreign worker levies and tighter quotas were introduced last July as part of a national move to attain productivity growth of 2 per cent to 3 per cent every year for 10 years.
These are to be implemented over three years which, the minister noted, gives employers time to make changes, including training workers, improving work processes and introducing practices to attract older workers and women.
'But employers have to start to implement the measures now,' he said.
However, Mr Gan assured employers they can expect more help from the $2 billion National Productivity Fund.
The worker shortages are acute, especially in the retail and food and beverage industries.
Job vacancies hit a four-year high of 50,200 last September, with about 15,000 unfilled for at least six months.
Meanwhile, Ms Karin Clarke, regional director of recruitment agency Randstad, said employers could overcome the shortage by offering flexible work options for mothers, older workers and staff with dependants.
Employers interviewed were not surprised at Mr Gan's unrelenting position on foreign workers, and said hiring more part-time workers and raising wages are among the solutions they will have to consider to attract more Singaporeans and PRs.
Mr Loo Lip Giam, director of Focus Network Agency, which sells chocolates through its Cocoa Trees retail chain, said that in the past year, he had raised the salaries for some jobs by up to 20 per cent.
'I understand the downside if the policy on foreign workers was too loose. But I hope the Government can give us something to shoulder higher wage costs so we can hire more locals,' he said.
Mr Wong Mong Hong, president of the Singapore Food Manufacturers Association, suggested the Government offer more incentives to encourage housewives and retirees to do part-time work.
Economists interviewed cheered the rise in the number of jobs for Singaporeans and PRs.
Barclays Capital's Leong Wai Ho said the spike from 41,800 in 2009 to 54,200 last year reflected some success in the ongoing efforts to raise the skills and employability of Singaporeans.
[email protected]
Services sector helps drive 112,500 increase in total employment
By Kor Kian Beng
SINGAPORE created 112,500 jobs last year, with nearly half of them going to Singaporeans and permanent residents (PRs), according to the Ministry of Manpower (MOM) yesterday.
The remaining 58,300 jobs were taken up by foreigners, including 5,300 maids, who arrived to work here last year.
The foreign worker influx is a reversal of the decline of 4,200 in 2009, but is still lower than the 80,000 estimate given by Prime Minister Lee Hsien Loong at the National Day Rally last August.
Manpower Minister Gan Kim Yong said the fact that fewer foreigners came than expected earlier showed that efforts to reduce employers' reliance on them were paying off as bosses focused on raising productivity and hiring locals.
'We have to press on with this effort because we cannot become over-reliant on low-skilled foreign workers if we want to achieve sustainable and inclusive growth,' he said yesterday after a ceremony for retail assistants who had completed a training programme.
Mr Gan was asked by reporters to comment on MOM's preliminary figures, which show employment rose by 30,600 in the fourth quarter of last year.
Overall, total employment for 2010 increased by 112,500, powered by the services sector, which contributed 109,500 jobs. The total is a big jump from the 37,600 recorded in recession-hit 2009.
But Mr Gan poured cold water on employers' hopes that the Government would relax its foreign worker policy in the face of the tight labour market arising from the strong rebound in the economy.
He said he was aware of their anxieties, but reiterated that the policy was here to stay. 'If we are to relax (it)...we will encourage employers to once again go back to relying on foreign workers.'
Higher foreign worker levies and tighter quotas were introduced last July as part of a national move to attain productivity growth of 2 per cent to 3 per cent every year for 10 years.
These are to be implemented over three years which, the minister noted, gives employers time to make changes, including training workers, improving work processes and introducing practices to attract older workers and women.
'But employers have to start to implement the measures now,' he said.
However, Mr Gan assured employers they can expect more help from the $2 billion National Productivity Fund.
The worker shortages are acute, especially in the retail and food and beverage industries.
Job vacancies hit a four-year high of 50,200 last September, with about 15,000 unfilled for at least six months.
Meanwhile, Ms Karin Clarke, regional director of recruitment agency Randstad, said employers could overcome the shortage by offering flexible work options for mothers, older workers and staff with dependants.
Employers interviewed were not surprised at Mr Gan's unrelenting position on foreign workers, and said hiring more part-time workers and raising wages are among the solutions they will have to consider to attract more Singaporeans and PRs.
Mr Loo Lip Giam, director of Focus Network Agency, which sells chocolates through its Cocoa Trees retail chain, said that in the past year, he had raised the salaries for some jobs by up to 20 per cent.
'I understand the downside if the policy on foreign workers was too loose. But I hope the Government can give us something to shoulder higher wage costs so we can hire more locals,' he said.
Mr Wong Mong Hong, president of the Singapore Food Manufacturers Association, suggested the Government offer more incentives to encourage housewives and retirees to do part-time work.
Economists interviewed cheered the rise in the number of jobs for Singaporeans and PRs.
Barclays Capital's Leong Wai Ho said the spike from 41,800 in 2009 to 54,200 last year reflected some success in the ongoing efforts to raise the skills and employability of Singaporeans.
[email protected]
