Why job security remains a concern in Singapore despite low unemployment

SINGAPORE, Feb 9 — Job security remains a concern for some Singaporeans despite strong labour market indicators, with the issue set to be addressed in Budget 2025, according to the Straits Times.

Human resources professional Ray Tan spent a year informing colleagues of retrenchments during the Covid-19 pandemic. Although assured her role was safe, she was laid off in December 2022 with a month’s notice.

Over the next year, she sent out more than 300 resumes but secured fewer than 30 interviews. She finally found a new job in October 2024.

“There were times when it felt like there was no end in sight, and it really took a toll on my mental and emotional well-being,” she said.

Despite Singapore’s low unemployment rates, many workers still feel anxious about job stability.

Prime Minister Lawrence Wong acknowledged these concerns in a November 2024 press conference, stating that job security remains a key issue alongside the cost of living. He will address job opportunities and skills upgrading in the Budget statement on February 18.

“These concerns reflect real anxieties about disruptions caused by global turbulence and technological change,” PM Wong said.

With a general election potentially taking place by mid-year, these issues could influence voter sentiment.

Singapore Management University (SMU) law professor Eugene Tan noted that job insecurity presents a challenge for the ruling party, as economic stability has long been a cornerstone of its governance.

Factors driving job insecurity

Labour statistics suggest a resilient workforce, with resident unemployment staying below 3 per cent in 2024 and long-term unemployment holding steady at 0.8 per cent. The Ministry of Manpower (MOM) also reported low levels of discouraged workers.

However, economists highlight factors contributing to workers’ unease. National University of Singapore economist Ong Ee Cheng pointed to high-profile layoffs at firms such as Lazada, Shopee, Dyson and Samsung, which have heightened fears of job instability across industries.

SMU assistant professor of organisational behaviour and human resources Nina Sirola noted that contract work is becoming more prevalent as firms manage costs, increasing uncertainty for employees.

Singapore University of Social Sciences associate professor Walter Theseira added that an increase in contract and gig work could create a paradox where low unemployment coexists with high job insecurity.

Surveys reflect these concerns. A 2023 Institute of Policy Studies (IPS) report found that 35 per cent of over 1,000 Singaporean workers feared their jobs might not exist in the future. In production and transport sectors, this concern rose to nearly 50 per cent.

A 2025 National Trades Union Congress (NTUC) survey showed that 34 per cent of respondents feared job loss within three months, down from 40 per cent in 2024 but higher than 25 per cent in 2023.

The rapid rise of generative artificial intelligence (AI) has also disrupted traditional career progression.

IPS senior research fellow Laurel Teo noted that AI advancements force workers to reassess their career paths and retrain, leading to anxiety about long-term employability.

IT professional Subuwanto Widjaja, who was retrenched in July 2024, sought a career switch to cyber security. Despite applying for a conversion programme, he received no response after an initial interview. He eventually found another IT job but remains concerned about long-term career security.

Mid-career workers face greater challenges

NTUC deputy secretary-general Desmond Tan said mid-career workers feel job insecurity most acutely, as they struggle to update their skills while managing family responsibilities. They also face potential age discrimination and employer perceptions of lower adaptability to new technologies.

MOM data released in January showed that workers aged 40 and above experience longer unemployment periods than younger groups.

In 2024, about 5,000 workers aged 50 and over remained unemployed for more than a year, compared to 1,600 aged 40 to 49 and 1,700 aged 30 to 39.

Degree holders over 50 faced a median unemployment period of 18 weeks, compared to 15 weeks for diploma holders and eight weeks for those with secondary education.

Many mid-career workers contrast their experiences with their parents’ job stability.

Banking professional Andrea Tan, 44, said: “The business cycle is shortening, and you are likely to have more than one job in your career. That was very hard for my parents to understand.”

Christopher Lim and his wife, Lim Geok Keng, both 50, experienced unexpected retrenchments despite their senior roles in finance and food technology. Lim Geok Keng, who was retrenched in 2017 after 18 years at a financial services firm, later started a home-based kombucha business, which her husband joined after losing his job in 2020.

Government measures to address concerns

Singapore has implemented various policies to address job insecurity. The enhanced Fair Consideration Framework in 2020 imposed stricter penalties for discriminatory hiring, while Budget 2022 introduced higher minimum salaries for Employment Pass and S Pass holders and reduced work permit quotas.

The Workplace Fairness Bill, passed in January 2025, prohibits discrimination based on age, disability, nationality, race and sex. Other measures, including SkillsFuture, Workforce Singapore and NTUC’s Employment and Employability Institute, support workers in upskilling and career transitions.

In August 2024, PM Wong announced the SkillsFuture Jobseeker Support Scheme, a temporary safety net for retrenched workers. Launching in April 2025, it will provide up to US$6,000 for eligible workers to undergo training and career coaching.

Despite these efforts, balancing high-skilled foreign employment with local workforce priorities remains a challenge. Prof Theseira noted that while foreign talent is needed to fill skill gaps, some Singaporeans feel their job opportunities are at risk.

Political implications

Job insecurity has historically been a key political issue. In a 2021 parliamentary debate, the government stressed that Singapore cannot close itself off from foreign competition but must instead invest in its people to mitigate economic risks.

IPS’ Dr Teo suggested that while SkillsFuture has been successful, different approaches are needed for workers at different income levels. Transitions coach Masni Goh, 54, noted that many workers struggle to determine which skills they should develop for future careers.

SMU’s Dr Sirola pointed out that Singapore’s emphasis on meritocracy and continuous learning creates pressure for workers to constantly adapt, contributing to job anxiety.

Former Nominated MP Zulkifli Baharudin said Singaporeans have long assumed that stable employment is guaranteed, influencing major financial decisions such as home and car purchases. However, he emphasised that job disruption is now a permanent reality, requiring both government support and individual adaptability.

SMU’s Prof Tan noted that while no government can guarantee lifelong job security, the People’s Action Party (PAP) must convince Singaporeans that its measures will reduce employment concerns.

If workers feel inadequately supported, discontent could spread to other policy areas, such as Smart Nation 2.0 and immigration.

With the general election approaching, political parties are expected to debate job security extensively.

While the PAP will highlight its ongoing efforts, opposition parties will propose alternative solutions, particularly regarding how to finance job security initiatives.

Ultimately, Budget 2025 will serve as a crucial platform for PM Wong to reassure workers and demonstrate that job security remains a priority.

If the issue is not handled effectively, voter confidence in the government’s ability to address employment concerns may erode.