Thread by @jamuslim

This pandemic recession has been brutal for many Singaporeans, especially those that have been displaced from long-held jobs. But such displacements predated #COVID-19; technological advances and trade globalization mean this trend is set to continue. (1/n)

This means that what is needed is an end-to-end jobs safety net. At the back end, the Professional Conversion Program and SkillsFuture help workers reskill, while cofinancing via the Jobs Growth Incentive makes it more palatable for employers to take on retrained rookies. (2/n)

But there is more limited support at the front end. Immediately after losing their jobs, there usually isn’t any immediate relief for retrenched workers. While such insurance payouts aren’t huge, they are often very welcome help at a difficult time. (3/n)

It’s true that such insurance would ultimately be funded by workers themselves. There are benefits to this, from a fiscal sustainability perspective, but also costs, since premia would come out of worker paychecks. (4/n)

But that’s the nature of all insurance plans. Still, support comes at a time when cash flow is needed, and not everyone can lean on family or savings. For those lucky enough to never need payouts, they indirectly contribute to the welfare of their less-fortunate countrymen. (5/n)

Because such risk pools are at their best when they are large and diversified, a single government-run system is typically most efficient. To get the scheme going, government can seed the initial pool, but it would thereafter be self-funded. (6/n)

In Minister Teo’s reply, she acknowledged that redundancy insurance can provide useful income relief, and that MoM has not foreclosed this option. This is very heartening, as the #workersparty has been making this case for half a decade. (7/n)

Indeed, had a system of unemployment insurance been in place before COVID-19, we would have had to dip less into surpluses and reserves to provide relief. Wouldn’t a systematic scheme be better than ad hoc solutions that have to be enacted every time we face a recession? (8/n)

This is a policy framework whose time has come. We hope that a tripartite workgroup can be formed to explore the feasibility of an end-to-end jobs safety net, to help workers today, and tomorrow. #makingyourvotecount (n/n)