"Older workers hit hardest as more laid off in Singapore: MOM report - CNA 20 Apr 2016
SINGAPORE: More people in Singapore were laid off last year, with older workers hit the hardest, figures released by the Ministry of Manpower (MOM) on Wednesday (Apr 20) showed.
A total of 15,580 workers were laid off in 2015, a jump from the 12,930 laid off the previous year, according to the ministry’s annual Redundancy and Re-entry into Employment report.
Among residents made redundant, those aged 40 and above formed the majority at 65 per cent. PMETs (professionals, managers, executives and technicians) were also more vulnerable, with 8.9 layoffs per 1,000 employees compared to the overall 7.4.
Overall, residents were less vulnerable to lay-offs compared to foreigners, with the incidence of redundancy among residents at 7.1 layoffs per 1,000 employees lower than foreigners at 7.7 per 1,000.
Firms cited ongoing business restructuring and softer economic conditions as the main reasons for redundancies, the report said.
The majority of the increase came from the manufacturing and professional services sector, which has been hit by the fall in global oil prices and a slowdown in marine and construction demand. Redundancies also rose in wholesale trade and financial services.
The rate of re-entry into employment among residents also fell. According to the report, 66 per cent of residents who were laid off between January and September last year found employment by December, compared to the rate of 68 per cent in 2014.
A total of 81 per cent of residents who re-entered employment took three months or less to secure their new job, broadly similar to past cohorts, the ministry said.
“MOM will continue to closely monitor the economic and labour market situation, and work with tripartite partners to strengthen employment support to help displaced locals re-enter employment,” the ministry said."
15,580 workers being laid off seems like a large number. YET, Intel, the giant in the semiconductors industry just announced a layoff of 12,000 workers or 11% of its world wide workforce. Intel is NO losing money. Just that it is NOT making as much money as it like. Of course, the need to find growth with its dominant field of PC declining for the 5th year running prompted this deep cut.
Lessons for me are:
1. in any downturn, older workers who as PAID more due to seniority, and EVEN expertise accumulated over a number of years, CAN be the 1st target for any company to layoff its people. WHY? It is simply maths. If you are older and you are being paid MORE, you better be damn sure that your skills are IRPLACEABLE! Well, even the CEO can be replaced so I have YET to truly see a person with such unique skills set that he or she CANNOT be replaced!;
2. given that certainty that older workers will be impacted the most, it is prudent for the 'older workers' to MANAGE their finances conservatively and WELL. In Singapore, try to live in a HDB flat with mortgage that you can probably comfortably pay off in less than 20 years. 15 years will be even better IF you want to be free from being 'house slave'! Save for this eventuality of working for others. When you are senior, it does not mean the sky is the limit. Think about the absolute needs to be financially free when you past 45 years old. A big task considering even the earlier baby[boomers may still have to work past 50 to accumulate enough money to think of retiring. Maybe the more realistic goal is to work past 54 years old with a MUCH lower FIXED salaries, experts or not! Why? when you are older, especially without worrying about the kids' expenses, 'LESS is MORE' for consumption! This means we don't need TOO MUCH money! Our fixed salaries will be lower, and the variable bonus can be a high as the business can afford to do so without compromising the need to invest for the longer term;
3. there will be call for older LOCAL workers to be protected by making them ONLY the 2nd or even 3rd choice when companies are making retrenchment. This is REASONABLE provided that Singapore's older PMETs are TRULY world class and very competitive against the foreign workers by a MILE! Singaporean FMETs are SO good that our employers will rather KEEP a slightly more expensive PMETs than replacing them with 'cheaper' foreign workers. So, the choice has to be a commercial one rather than a political one.
May all these people and their initiatives bear fruits for many more years to come!
SINGAPORE: More people in Singapore were laid off last year, with older workers hit the hardest, figures released by the Ministry of Manpower (MOM) on Wednesday (Apr 20) showed.
A total of 15,580 workers were laid off in 2015, a jump from the 12,930 laid off the previous year, according to the ministry’s annual Redundancy and Re-entry into Employment report.
Among residents made redundant, those aged 40 and above formed the majority at 65 per cent. PMETs (professionals, managers, executives and technicians) were also more vulnerable, with 8.9 layoffs per 1,000 employees compared to the overall 7.4.
Overall, residents were less vulnerable to lay-offs compared to foreigners, with the incidence of redundancy among residents at 7.1 layoffs per 1,000 employees lower than foreigners at 7.7 per 1,000.
Firms cited ongoing business restructuring and softer economic conditions as the main reasons for redundancies, the report said.
The majority of the increase came from the manufacturing and professional services sector, which has been hit by the fall in global oil prices and a slowdown in marine and construction demand. Redundancies also rose in wholesale trade and financial services.
The rate of re-entry into employment among residents also fell. According to the report, 66 per cent of residents who were laid off between January and September last year found employment by December, compared to the rate of 68 per cent in 2014.
A total of 81 per cent of residents who re-entered employment took three months or less to secure their new job, broadly similar to past cohorts, the ministry said.
“MOM will continue to closely monitor the economic and labour market situation, and work with tripartite partners to strengthen employment support to help displaced locals re-enter employment,” the ministry said."
15,580 workers being laid off seems like a large number. YET, Intel, the giant in the semiconductors industry just announced a layoff of 12,000 workers or 11% of its world wide workforce. Intel is NO losing money. Just that it is NOT making as much money as it like. Of course, the need to find growth with its dominant field of PC declining for the 5th year running prompted this deep cut.
Lessons for me are:
1. in any downturn, older workers who as PAID more due to seniority, and EVEN expertise accumulated over a number of years, CAN be the 1st target for any company to layoff its people. WHY? It is simply maths. If you are older and you are being paid MORE, you better be damn sure that your skills are IRPLACEABLE! Well, even the CEO can be replaced so I have YET to truly see a person with such unique skills set that he or she CANNOT be replaced!;
2. given that certainty that older workers will be impacted the most, it is prudent for the 'older workers' to MANAGE their finances conservatively and WELL. In Singapore, try to live in a HDB flat with mortgage that you can probably comfortably pay off in less than 20 years. 15 years will be even better IF you want to be free from being 'house slave'! Save for this eventuality of working for others. When you are senior, it does not mean the sky is the limit. Think about the absolute needs to be financially free when you past 45 years old. A big task considering even the earlier baby[boomers may still have to work past 50 to accumulate enough money to think of retiring. Maybe the more realistic goal is to work past 54 years old with a MUCH lower FIXED salaries, experts or not! Why? when you are older, especially without worrying about the kids' expenses, 'LESS is MORE' for consumption! This means we don't need TOO MUCH money! Our fixed salaries will be lower, and the variable bonus can be a high as the business can afford to do so without compromising the need to invest for the longer term;
3. there will be call for older LOCAL workers to be protected by making them ONLY the 2nd or even 3rd choice when companies are making retrenchment. This is REASONABLE provided that Singapore's older PMETs are TRULY world class and very competitive against the foreign workers by a MILE! Singaporean FMETs are SO good that our employers will rather KEEP a slightly more expensive PMETs than replacing them with 'cheaper' foreign workers. So, the choice has to be a commercial one rather than a political one.
May all these people and their initiatives bear fruits for many more years to come!
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