Manpower Minister Josephine Teo does not seem to have a sufficient understanding of labour market economics

Mr Yeoh Lam Keong, an Ex-GIC chief economist.

Unfortunately, Manpower Minister Josephine Teo does not seem to have a sufficient understanding of labour market economics required to see the important need for unemployment insurance ( UI ) in Singapore for at least three reasons.

First, Minister Teo’s portrayal that companies with UI “usually have persistently high unemployment “ is inaccurate at best and misleading at worst.

Of the 27 member OECD developed countries, 25 operated an unemployment insurance systems including many countries with low unemployment eg Germany, Japan, Switzerland, Korea and Taiwan including some much more competitive export economies with lower unemployment than Singapore ( Germany and Japan ).

Second, there is little evidence of an inefficient reduction in incentive to work in properly designed UI systems as Minister Teo claims . In fact, the labour market evidence shows that UI for about 3 months enables optimum job search that prevents workers from jumping at the first job that may not be such a good match for their skills or experience.

Third, Minister Teo seems oblivious to the trend that artificial intelligence is already increasingly replacing both unskilled and skilled workers and consigning them to a gig economy of much more frequent job shifts, often with lesser paying work.

There are currently an estimated 25-30,000 households who fall into absolute poverty at any one time because of such involuntary unemployment. Without an automatic unemployment protection system , many fall through the cracks of our Commcare and skills retraining systems.

Not putting in place an intelligent unemployment protection system is thus short sighted, inhumane and just poor manpower policy, imho.

To her credit, Minister Teo has promised to “ keep an open mind “ on this issue. Let’s hope it is open enough to see the above arguments and the big picture that Singapore still lags the developed world in many areas of much needed social protection.
“In response, Mrs Teo said that countries that provide unemployment insurance usually have persistently high unemployment, which is unlike the situation in Singapore.

“Willingness to pay for unemployment insurance is not the same (here) because most people do not expect to need it and they also have other buffers, for example, a working spouse or child,” she said.

… Mrs Teo said that the Government will “keep an open mind” on unemployment insurance, but pointed out that there are serious downsides to having such a provision. These include reducing workers’ motivation to find work as well as decreasing the willingness of employers to pay retrenchment benefits”

 

 * Facebook post by Yeoh Lam Keong, an Ex-GIC chief economist.

 

 

 

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14 Responses to “Manpower Minister Josephine Teo does not seem to have a sufficient understanding of labour market economics”

  • Harder Truths:

    The usual 70% culprits agree with her. Will they have an ‘open mind’ to vote wisely next time?

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  • Another sia suay ministor:

    Two things this blurred woman keeps a rather open mind though,

    1. Like to wear bare back for old man’s funeral.
    2. Prefer to do x thingy in small space. Still wonder how she is able to perform well.

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  • Hopelesslyuseless:

    WHAT to EXPECT from a $$$ (for sale to highest bidder)

    Another KBW from MY, hear to destroy SG….

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  • dont wonder:

    Another sia suay ministor:
    Two things this blurred woman keeps a rather open mind though,

    1. Like to wear bare back for old man’s funeral.
    2. Prefer to do x thingy in small space. Still wonder how she is able to perform well.

    seems like you have listed 1 & 2 that she performed well in 1 & 2.

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  • Bong:

    dont wonder: seems like you have listed 1 & 2 that she performed well in 1 & 2.

    But she is no longer attractive. I not saying dried up

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  • Realistically:

    @ Yeoh Lam Keong

    Thanks for exposing the FACTUAL untruths or is it FALSEHOOD of the PAPie Minister. Only problem is that our so-called oppo wayang party MP also quite clueless about labour economics & the FACTS about those countries you mentioned.

    “Not putting in place an intelligent unemployment protection system is thus short sighted, inhumane and just poor manpower policy, imho.”

    What do sinkies expect of the PAPie Government with no conscience whose basic philosophy is “you die your business”; “what’s wrong with collecting more money from sinkies?”; “get out of my (ie PAPies’) elite uncaring face”?

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  • TruBlu:

    WHAT DO YOU EXPECT FROM her,SIR?

    SHE IS THE ONE WHO SAID “MILK IS MILK’???…SHE THOUGHT IT SOUND PROFOUND?

    CANT BE MORE BODOH LAH!

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  • Asd:

    Glad people in the know are coming out to openly dispel people who pretends to know

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  • LKY fuck spider:

    Josephine is only good at making motherhood statements like You can fiack in small spaces and Milk is milk.Her son is a WHITE HORSE in the army, a previlage only the elites enjoy.

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  • Soccerbetting2:

    Report on the Straits Times-Quote “Cup of cups – which cup noodles are worth eating?
    ….
    The Sunday Times did a taste test of 29 varieties from different brands.ST PHOTO: LIM YAOHUI
    PUBLISHED7 HOURS AGO
    FACEBOOKWHATSAPPTWITTER
    Tan Hsueh YunFood Editor
    SINGAPORE – In the panic-buying spree that happened when the coronavirus alert in Singapore was raised from yellow to orange, shoppers cleaned out stocks of instant and cup noodles in supermarkets.

    But in desperate times, is it really feasible to boil pots of water to make bowls of noodles? Are cup noodles more practical, even if they take up more space? And if cup noodles are the way to go, which ones are worth eating?”

    Response : Really, who is behind all these panic buying of instant noodles from store? Is it more likely that those shameless woman who are doing panic buying of instant noodles from the supermarkets are their own “ka ki lang” saleswoman from the respective instant noodles company faking a stage show of panic buying to boost the sales of instant noodles making more profits. So citizens will be fooled to buy up instant noodles? Maybe that fat pig woman reporter never use her brains?

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  • Build strong families:

    Many problems will be solved if “ONE SALARY DECENTLY SUPPORTS ONE FAMILY” is in place.
    The state is responsible to set up this economic model.
    The man puts the bread on the table, the wife governs the affairs of the home.
    The target is better quality family life.
    The state should not encourage the masses of women to go out to work which essentially is to support and prop up the few super rich to stay and remain rich.
    In the natural order of needs and essential and for quality family living, the man works, the wife/mother stays home managing the home.
    Biggest mistake is to entrust the managing of the home and especially children in their formative ages to strange foreign maids.
    Educate women to the highest level she aspire to or could achieve and then get the natural order and priorities right.
    Encourage and glorify the role of the woman/wife/mother to be the queen of the household.
    This all important subject, long neglected must be seriously discussed and addressed in depth.
    Strong families equal strong nation.
    One decent salary to sustain maintain one home family unit is the solution to most of the ills that we see around us and the world today.

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  • gdp:

    someone somehow got the priorities & values (mis)placed that resulted into the current state of our “nation” today, void of desirable characters and characteristics. 启蒙 修身 齐家 治国 平天下 ???

    Build strong families:
    Many problems will be solved if “ONE SALARY DECENTLY SUPPORTS ONE FAMILY” is in place.
    The state is responsible to set up this economic model.
    The man puts the bread on the table, the wife governs the affairs of the home.
    The target is better quality family life.
    The state should not encourage the masses of women to go out to work which essentially is to support and prop up the few super rich to stay and remain rich.
    In the natural order of needs and essential and for quality family living, the man works, the wife/mother stays home managing the home.
    Biggest mistake is to entrust the managing of the home and especially children in their formative ages to strange foreign maids.
    Educate women to the highest level she aspire to or could achieve and then get the natural order and priorities right.
    Encourage and glorify the role of the woman/wife/mother to be the queen of the household.
    This all important subject, long neglected must be seriously discussed and addressed in depth.
    Strong families equal strong nation.
    One decent salary to sustain maintain one home family unit is the solution to most of the ills that we see around us and the world today.

    GD Star Rating
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  • Harder Truths:

    To understand you must have a brain. A real brain.
    Have or not? No wonder so blur like sotong.

    GD Star Rating
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  • Priorities all topsy turvy:

    Many couples, especially those without any backups of grandparents or in-laws, left their children in the care of their maids full time.
    This is a big mistake with lots of regrets later.
    A home without the wife/mother attending to the affairs of the home full time is not a home.
    The consequences are too many to elaborate here.
    Not much thought has been given to this situation and position.
    The economic priorities here does not support a system that provides enough for one single wage earner to comfortably run a family.

    GD Star Rating
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