SINGAPORE — Reskilling workers is at the heart of tackling unemployment, but more help is needed from the Government to point those out of work in the right direction, in terms of where the opportunities are, union leaders interviewed by TODAY said.

This would go some way towards motivating workers, some of whom have been less than enthusiastic in upgrading themselves as they are sceptical of whether there would be new jobs waiting for them after they pick up new skills, said the unionists yesterday in response to Prime Minister Lee Hsien Loong’s May Day rally speech. Nevertheless, they acknowledged that workers here are not as hungry as their overseas counterparts.

Among other things, Mr Lee outlined the Government’s measures — including training workers to help them develop in their current roles — to ensure Singapore continues to prosper, even though the unemployment rate is expected to creep up further as the economy matures.

Mr Arasu Duraisamy, general secretary of the Singapore Port Workers Union, singled out the task of reskilling workers as the most challenging, although it would also reap the most benefits for the economy.

“Our workers somehow lack the hunger (to upskill themselves) ... In other countries, if (the people) don’t do the job, somebody else will come and take the job. But in Singapore, I think there is no lack of jobs. The unemployment rate is (relatively) low, so they have the mentality that they can leave a job and get another easily,” he said.

He stressed: “We have workers in sunset industries who need to be shifted to the up-and-coming industries. You need a job conversion, so whatever skills you have learnt from the past might not be relevant for the future.”

Mr Abdul Samad Abdul Wahab, general secretary of the Union of Power and Gas Employees, felt that workers want the guarantee of jobs before they go for training.

“They don’t want to retrain, then (find that there are) no jobs. We have to motivate them that there are jobs they can be matched to.”

Workers have to be informed where the new jobs are, said Ms Sylvia Choo, executive secretary of the Singapore Industries & Services Employees’ Union. Then, the labour movement can work with employers to secure these openings and help displaced workers gain the required skills and make the transition, she said.

Although transformation can be a “painful process”, Ms Jessie Yeo, executive secretary of the Metal Industries Workers’ Union and Singapore Port Workers Union, felt that employers should be forward-thinking.

“It’s a one-time pain. Thereafter, the company will have a longer runway ... I’ve seen companies that are now constructing smart factories, and their workers have a longer runway in their careers as a result,” she said.

“But if businesses go on a cost-cutting spree, they will not be prepared to invest (in transformation) and, to be blunt, we know that they will (be gone) if they do not (try to) transform.”

Singapore’s unemployment rate has climbed to 2.3 per cent due to economic restructuring. In his speech, Mr Lee noted that this is low compared to developed countries, which typically have much higher unemployment rates of at least 5 per cent.

Economists said that with disruption caused by technology, rising structural unemployment is inevitable. Nevertheless, they did not think Singapore’s unemployment rate would hit as high as 5 per cent in the foreseeable future.

CIMB economist Song Seng Wun said: “For that scenario to pan out, there would have to be a severe downturn, regionally and globally.” But with the “new norm”, unemployment could rise above 2.5 per cent even if the economy picks up, he said.

“It is the impact of an older labour force, and disruptive technology, leading to a permanent shift in the employment market.

OCBC economist Selena Ling stressed that the right economic ecosystem and reskilling could save jobs, and keep unemployment low.

“We need both the demand and supply sides. We need foreign and local investments, innovation and entrepreneurship, these would lead to jobs being created. Then we need workers to be trained in the right skills so they can be prepared for the new industries,” she said.