1. © 2010 Government of Singapore A Great Workforce A Great Workplace 1 Caryn Lim Manpower Planning & Policy Division 2 Aug 2011 Singapore’s Labour Market And Manpower Strategies

2. © 2010 Government of Singapore A Great Workforce A Great Workplace 2 Singapore’s Labour Market Situation Key Challenges Manpower Strategies A C B

3. © 2010 Government of Singapore A Great Workforce A Great Workplace 3 Quarterly Employment Change, 1Q 06 – 1Q 11 p = Preliminary Source: Employment Statistics, MOM Strong Recovery in Job Creation Employment Change in 1Q 2011: 28,300

4. © 2010 Government of Singapore A Great Workforce A Great Workplace 4 Unemployment Back at Pre-Recession Levels Seasonally-adjusted Unemployment Rate, Dec 06 – Mar 11 P = Preliminary Source: Labour Force Survey Mar 2011 Overall: 1.9% Resident: 2.7% Overall Resident

5. © 2010 Government of Singapore A Great Workforce A Great Workplace 5 Improving workforce occupational profile Source: Labour Force Survey, 2010 Employed Residents by Occupation, June 1999 and June 2010 42.0% 52.0% 28.7% 24.8% 29.3% 23.2% 0% 20% 40% 60% 80% 100% 19992010 Production & Transport Operators, Cleaners and Labourers Clerical, Sales & Service Workers Professionals, Managers, Executives & Technicians More than half are Professionals, Managers, Executives & Technicians (PMETs)

6. © 2010 Government of Singapore A Great Workforce A Great Workplace 6 Improving workforce educational profile Source: Labour Force Survey, 2010 36.0% 22.3% 28.5% 20.0% 12.0% 18.1% 14.6% 27.6% 8.7% 12.2% 0% 20% 40% 60% 80% 100% 19992010 Below SecondarySecondaryUpper SecondaryPolytechnic DiplomaDegree Economically Active Residents by Education, June 1999 and June 2010 More than a quarter of economically active residents today have a Degree

7. A Great Workforce A Great Workplace © 2010 Government of Singapore 7 Highly Regarded Labour Force Labour Market Singapore’s Ranking Sources Labour Force1BERI 2010 Labour Market Efficiency1GCR 2010 Manpower Indicator Singapore's Ranking Source Quality of education system which meets the needs of a competitive economy 1GCR 2010 Relative Productivity1BERI 2010 Technical Skills1BERI 2010

8. © 2010 Government of Singapore A Great Workforce A Great Workplace 8 Singapore’s Labour Market Situation Key Challenges Manpower Strategies A C B

9. A Great Workforce A Great Workplace © 2010 Government of Singapore 9 Globalisation Ageing Workforce Productivity Growth Key Manpower Challenges

10. © 2010 Government of Singapore A Great Workforce A Great Workplace 10 Singapore’s Labour Market Situation Key Challenges Manpower Strategies A C B

11. A Great Workforce A Great Workplace © 2010 Government of Singapore 11 Manpower strategies Globally Competitive Workforce Improving Workforce Productivity Enhancing Workforce Profile to meet industry’s needs

12. A Great Workforce A Great Workplace © 2010 Government of Singapore 12 Identify critical manpower needs Demand Projection Skills Mapping Industry Globally Competitive Workforce Strategies Local Workforce Development Foreign Manpower –Developing local workforce via Pre- Employment Training (PET) –Ensuring workforce remains competitive and relevant through Continuing Education and Training (CET) –Augmenting our workforce through foreign workforce policy –Attracting and Retaining Talent A workforce profile that meets industry needs Our objective is to facilitate the RIGHT QUANTITY and QUALITY of workers at the RIGHT PRICE, through:

13. A Great Workforce A Great Workplace © 2010 Government of Singapore 13 Developing local workforce via PET Broad numerical PET targets set annually for Post-Secondary Educational Institutions (PSEIs) –Ensures pipeline of skilled manpower to meet industry needs Maintain Science & Technology (S&T) focus Increase university cohort participation rate to 30% by 2015 –Singapore University of Technology and Design to take in its first intake in 2012, with MIT and Zhejiang University as its partners –Singapore Institute of Technology (SIT) to work with foreign universities to offer degree courses with the 5 polytechnics

14. A Great Workforce A Great Workplace © 2010 Government of Singapore 14 Vision of a first class CET system Culture of Lifelong Learning Strong Tripartite Partnership Quality Training Professionals Best-in-Class Institutions Good Access and Linkages Relevant Training Programmes Government Investment in CET - $2.5bn over 5 years

15. A Great Workforce A Great Workplace © 2010 Government of Singapore 15 Infrastructure development Singapore Workforce Skills Qualification System  26 WSQ frameworks currently CET Infrastructure  3 National CET Institutes, 50 CET Centres and about 500 Approved Training Organisations  2 National CET Campuses to be ready in 2013 Role of Workforce Development Agency in CET

16. A Great Workforce A Great Workplace © 2010 Government of Singapore 16 NTUC Employment and Employability Institute (e2i)  Career Centres  Training Advice  Job Fairs/Outreach to workers Learning Hub SNEF SNEF Training Institute Outreach to employers Tripartite Approach in Implementation of CET

17. A Great Workforce A Great Workplace © 2010 Government of Singapore 17 Main Sources of Funding for CET Training The Skills Development Fund (SDF) Funded by levy on employers (i.e. Skills Development Levy) Employers levied at 0.25% of gross salary of employees or $2, whichever is greater The Lifelong Learning Endowment Fund (LLEF) An endowment fund set up by Government Fund currently stands at $3.6 billion; interest earned from the fund provides for lifelong learning initiatives

18. A Great Workforce A Great Workplace © 2010 Government of Singapore 18 Enhancements to CET Raising the Quality of CET A Push on CET for PMETs Continued Help for Rank-and- File Workers Targeted Efforts for Specific Sectors

19. A Great Workforce A Great Workplace © 2010 Government of Singapore 19 Helping older workers remain in workforce Four key thrusts Expand employment opportunities of older workers Enhance cost competitiveness of older workers Raise skills and value of older workers Shape positive perceptions of older workers Key initiatives Re-employment Legislation by 2012 ADVANTAGE! scheme Promoting fair employment practices

20. A Great Workforce A Great Workplace © 2010 Government of Singapore 20 ADVANTAGE! Scheme Aim Increase the recruitment, retention and re- employment of older workers ADVANTAGE! Financial grant of up to $400,000 in support of initiatives in implementing HR systems and processes that directly increase employment and retention of older workers Examples of initiatives supported include: Enhancing workplace ergonomics Redesigning wage structure Training grants for mature workers Job redesign

21. A Great Workforce A Great Workplace © 2010 Government of Singapore 21 Flexible Working Arrangements Aim Encourage companies to offer flexible working arrangements to economically inactive residents (including women) Flexi-Works! Financial grant of up to $100,000 for companies to put in place flexible working arrangements and to hire economically inactive residents on such arrangements Examples of flexible working arrangements include: Part-time work Telecommuting Home-based work Training

22. A Great Workforce A Great Workplace © 2010 Government of Singapore 22 Foreign Manpower Is A Key Component Of Our Economic Growth Augments our limited local workforce Keeps our workforce competitive to bolster growth industries and attract investments

23. A Great Workforce A Great Workplace © 2010 Government of Singapore 23 For talent – enhance economic competitiveness For skills – support key/growth industries (aerospace, marine) Locals Personalised Employment Pass (PEP)/ Employment Pass (EP): Encourage and facilitate talent recruitment Talent Work Permit (WP): Maintain a controlled and revolving pool Unskilled/ Semi-skilled Objectives of the Work Pass Framework S Pass: Facilitate the entry of skilled manpower at middle level Mid-skilled

24. A Great Workforce A Great Workplace © 2010 Government of Singapore 24 Manpower strategies Globally Competitive Workforce Improving Workforce Productivity Enhancing Workforce Profile to meet industry’s needs

25. A Great Workforce A Great Workplace © 2010 Government of Singapore 25 Strategic shift towards sustainable and inclusive growth Tripartite Partners National Productivity & Continuing Education Council Employers Government Unions Target: 2 - 3% p.a. productivity growth target p.a.

26. A Great Workforce A Great Workplace © 2010 Government of Singapore 26 Progress of our Productivity Efforts NPCEC has endorsed 8 out of the 12 productivity roadmaps of the priority sectors as well as 3 horizontal programmes. Construction Enhance building legislation and promote technology adoption Retail Promote concept innovation and optimise manpower through part-time pool F&B Drive process re-design and upgrade manpower capabilities Electronics Industry transformation by shifting toward higher VA activities and R&D Precision Engineering Grow globally competitive suppliers and groom Mastercraftmen Hotel Improve customer service and raise manpower supply and quality Logistics Use of automation and IT and develop pan- Asian talent in supply chain management General Manufacturing Produce high VA products through innovation, design and branding Inclusive Growth Programme SME Productivity Roadmap iSPRINT

27. A Great Workforce A Great Workplace © 2010 Government of Singapore 27 Strong Tripartism GOVERNMENT UNIONS EMPLOYERS

28. A Great Workforce A Great Workplace © 2010 Government of Singapore 28 Ministry of Manpower, Singapore: A Great Workforce. A Great Workplace – Towards Singapore as a Global City and Home T HANK Y OU