Re-entry rates of retrenched Singapore workers expected to improve over time

This is because many of the retrenched workers from sectors such as information & communications possess in-demand skills.

The rate of re-entry into employment six months after retrenchment for retrenched Singapore workers dipped slightly from 61.5% in Q4 2023 to 59.4% in Q1 2024. As a result, MP Liang Eng Hwa shared a question in Parliament on the causes for this trend, and if more actions can be taken to help Singaporeans who have been laid off to find jobs sooner.

In response, the Ministry of Manpower has shared that this decline in re-entry rate was driven by residents mainly by residents retrenched from the following three sectors:

• Information & communications,
• Financial & insurance services, and
• Professional services.

These sectors saw relatively higher retrenchments in 2023 and slightly lower re-entry rates due to their exposure to global economic headwinds.

However, the re-entry rates of the residents retrenched in most other sectors remained similar.

As the Ministry pointed out, among residents who have yet to find employment at the six-month mark, some might still be looking for a preferred role, undergoing training or taking a break.

Nonetheless, given that many of the retrenched workers from the above sectors possess in-demand skills, re-entry rates are expected to improve over time.

Per past data, the re-entry rates of previous cohorts of retrenched workers usually rises to around 75% at the 12-month mark. In addition, the majority of such workers receive similar or higher salaries in their new jobs.

In its response, the Ministry also revealed it will be introducing a support scheme to help involuntarily unemployed jobseekers to bounce back into employment. "We are close to finalising the scheme parameters, and more information will be announced later this year," noted the statement.

---

ALSO READ: Retrenchment as the last resort: How to do it responsibly