Commentary: How much will the SkillsFuture Jobseeker Support scheme help unemployed Singapore residents?

SINGAPORE: The SkillsFuture Jobseeker Support scheme, introduced by Prime Minister Lawrence Wong at the National Day Rally, signals a departure from Singapore’s long-standing reluctance to offer unemployment benefits.
The new scheme provides lower- to middle-income individuals with up to S$6,000 over six months if they lose their jobs. Payouts begin at up to S$1,500 per month, declining in subsequent months.
To qualify for the scheme, Singaporeans and permanent residents must be unemployed due to involuntary reasons such as retrenchment or illness, have earned S$5,000 or less per month, be actively engaged in searching for a new job, among other conditions. About 60,000 people – 60 per cent of involuntarily unemployed individuals –  are expected to be eligible for the scheme each year.
The SkillsFuture Jobseeker Support scheme will be rolled out for citizens in April 2025, and for permanent residents in the first quarter of 2026.
While Singapore’s unemployment support scheme is relatively conservative in comparison to what is offered by Western nations, it indicates that the government is now willing to reconsider traditional policies given changing labour market realities.
This shift acknowledges that different times require different forms of assistance, mainly when technological disruption creates a mismatch between the skills in demand and the expertise available in the labour pool.
Disruptive technologies such as generative artificial intelligence are reshaping the job market. Entire industry segments are facing rapid transformations, and the skills that were once in demand are no longer sufficient for the future.
This is particularly evident in sectors like manufacturing and logistics, where tasks requiring human labour are increasingly handled by intelligent machines or AI-driven systems. Many workers, particularly those in lower-income brackets, face the challenge of adapting to new roles or shifting to entirely different industries.
Even technology companies are not immune to AI. Tech giants from Amazon to Google have laid off workers and adopted these technologies to optimise operations and reduce costs.
Displaced workers usually face immense pressure to retrain or transition to new careers. However, not all displaced workers can pivot quickly to roles that require entirely different skill sets.
Given this reality, providing short-term financial support through the SkillsFuture Jobseeker Support scheme is timely and essential. It enables individuals to reskill or upskill without the immediate pressure of economic instability.
As Singapore residents live longer, multiple career shifts throughout a working life become likelier. In the words of Laura Carstensen, Director of Stanford Center on Longevity: “If you’re going to live to 100 or older, you’re probably going to have to return to school several times as an adult to learn what’s new.”
The era of vertical career progression, where workers focus on moving up within one specialisation, is giving way to a “career portfolio” approach. In this model, individuals build multiple adjacent skills to remain relevant, focusing on versatility and adaptability.
This shift highlights the need to move away from traditional T-shaped skills, where deep expertise in one area is complemented by basic knowledge in others, towards V-shaped skills. The latter emphasises not only deep expertise but also multiple specialised skills across related fields.
Building a more diverse and specialised skill set will be essential for Singapore’s workforce to stay future-proof in a rapidly changing job market.
While the scheme is a step in the right direction, it only provides up to S$750 to S$1,500 per month for each displaced worker. It may not represent a significant change from the traditionally cautious approach to unemployment benefits.
The government is balancing its desire to support displaced workers with maintaining a productive workforce. By linking the payouts to active job searches and training efforts, the scheme ensures that only those making genuine efforts to re-enter the workforce receive financial aid.
In this way, Singapore stays true to its principles of promoting self-reliance while acknowledging that specific segments of society require temporary help to stay afloat during tough times.
In explaining why Singapore has not moved to a welfare state model, former prime minister Lee Hsien Loong pointed out that European welfare states collect 40 per cent of their gross domestic product in taxes, while Singapore only collects about 15 per cent.
“The restraint is if you do not have the money, you cannot do it,” he said.
While the goal of supporting lower- and middle-income individuals is commendable, the challenges lie in the effective implementation of the scheme.
What is the exact definition of “involuntarily unemployed”? Do we include those who were asked to leave due to poor work conduct or performance? How will the government distinguish such workers?
There are also practical challenges. What training courses should be offered to align with current job market demands? Can individuals who have been away from formal learning for extended periods acquire and master new skills within six months?
Addressing these will be critical in determining whether the scheme successfully encourages employment.
If the SkillsFuture Jobseeker Support scheme proves successful, it could pave the way for the government to expand its scope, offering similar support to a wider pool of unemployed individuals.
Other schemes are already available to individuals who choose to undergo reskilling, such as the SkillsFuture Level-Up Programme. It gives Singaporeans aged 40 and above a monthly allowance of up to S$3,000 for up to 24 months if they enrol in full-time training courses.
Besides mature workers, support could be extended to employees who voluntarily take career breaks for caregiving or personal illness. Financial aid could alleviate mental and financial stress during these transitions, allowing individuals to focus on their needs without fearing economic hardship. Such measures can also reduce the dropout of talented individuals from the workforce.
By introducing the unemployment support scheme, Singapore signals its readiness to adapt to the needs of its workforce, ensuring that it remains competitive while protecting its most vulnerable workers.
Sriram Iyer is an adjunct senior lecturer in the Department of Management and Organisation, while Xu Le is a lecturer in the Department of Strategy and Policy at the National University of Singapore (NUS) Business School. The opinions expressed are those of the writers and do not represent the views and opinions of NUS.