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Written Answer by Mrs Josephine Teo, Minister for Manpower, to PQ on the employment rate of older workers

Employment practices

NOTICE PAPER NO. 1855 OF 2019 FOR THE SITTING ON 7 OCT 2019
QUESTION NO. 3216 FOR ORAL ANSWER

MP: Mr Liang Eng Hwa

To ask the Minister for Manpower (a) what are the current employment trends and employment rates of Singaporeans between the ages of (i) 50 to 59 and (ii) 60 to 65 respectively; and (b) what are the policy measures and concerted efforts required to further improve the employment rate of senior Singaporeans.

Answer

  1. Over the past decade, concerted tripartite efforts have led to an improvement in older worker employment outcomes. The employment rate for residents aged 50 to 59 rose from 70% in 2008 to 76% in 2018. The employment rate for residents aged 60 to 64 saw a significant increase as well, from 47% in 2008 to 60% in 2018. 
  2. A Tripartite Workgroup on Older Workers was formed to develop recommendations to help strengthen support for older worker employment. The Workgroup has released its recommendations in August this year. These recommendations were fully accepted by the Government.
  3. In particular, Prime Minister announced the Government’s acceptance of the Workgroup’s recommendation to raise the Retirement Age (RA) and Re-employment Age (REA) to 65 and 70 by 2030. The first move, to increase RA to 63 and REA to 68 will take effect from 1 July 2022. The increases in RA and REA will provide older workers the assurance of employment up to a higher age, while continuing to meet employers’ need for flexibility to make reasonable adjustments to the employment terms of re-employed workers. 
  4. As legislation alone is insufficient to achieve truly age-friendly labour markets, the Workgroup also made recommendations to promote inclusive and progressive workplaces for older workers. These include (i) voluntary adoption of the higher RA and REA ahead of scheduled legislative changes; (ii) implementing transformative job redesign to effect systems-level and organisation-wide change; (iii) engaging mature and older workers in structured career planning sessions to guide workers on the training they need for career development and re-employment; and (iv) providing part time employment opportunities to allow more older workers to continue working at lower intensities. 
  5. Both employers and older workers must play their parts in achieving productive longevity for Singaporeans. Employers must redesign workplaces and processes in ways that support older workers to continue contributing meaningfully, and ensure they are equipped with the right skills to perform. Workers must also be adaptable, willing to upgrade and update their skills, and keep an open mind about trying new roles. The Government has committed to support both employers and workers to make these necessary changes. More details on this support will be shared at Budget 2020.