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Hiring of women, older workers hits high amid labour crunch

SINGAPORE — Efforts over the past decade to persuade more women and older workers to rejoin the workforce appear to be paying off, with the employment rates of older workers and women rising to new highs amid the manpower crunch and low unemployment.

The higher employers’ CPF contribution for older workers and the raising of the re-employment age from 62 to 65 have encouraged older workers 
to return to 
the workforce. 
Photo: Don Wong

The higher employers’ CPF contribution for older workers and the raising of the re-employment age from 62 to 65 have encouraged older workers
to return to
the workforce.
Photo: Don Wong

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SINGAPORE — Efforts over the past decade to persuade more women and older workers to rejoin the workforce appear to be paying off, with the employment rates of older workers and women rising to new highs amid the manpower crunch and low unemployment.

The resident labour force participation rate for women and older workers aged 55 to 69 has jumped significantly since 2004, on the back of Government measures such as flexible work arrangements and extension of the reemployment age from 62 to 65 in 2012.

Helped by better initiatives to improve work-life integration, the participation rate for women rose from 51.3 per cent to 58.6 per cent this year. For workers aged 55 to 64, the participation rate rose from 49.5 per cent to 68.4 per cent over the same period, an increase the Ministry of Manpower (MOM) credited to tripartite efforts with boost the employability of older workers in its Singapore Workforce report released yesterday.

Significantly, the resident labour force participation rate of even older residents (65 to 69 years old) more than doubled over the past decade, from 18.9 per cent in 2004 to 41.2 per cent this year.

Overall, the employment rate of residents aged 25 to 64 reached a new high of 79.7 per cent this year, up from 79 per cent last year and 72.3 per cent a decade ago, said the ministry.

Analysts TODAY spoke to said labour force participation had been pushed up by a mix of government efforts and external factors.

The higher employers’ Central Provident Fund (CPF) contribution for older workers and the raising of the re-employment age from 62 to 65 have encouraged older workers to return to the workforce, said UOB economist Francis Tan. Women have also been helped by the increased number of childcare centres in younger neighbourhoods, he added.

The rise of flexible work arrangements — helped by government incentives — has also benefited women and older workers, said CIMB economist Song Seng Wun.

The analysts, however, also pointed to external factors, such as the higher cost of living, longevity and changing family structures.

“Children are not having grandchildren as early, so (women) could be working longer or rejoining the labour force because they have much smaller family units and fewer grandchildren to look after,” said Mr Song.

The mindsets of older residents are also shifting and those who have rejoined the labour force successfully may encourage friends of a similar age group to do so as well, he added.

While some have lamented the need for Singaporeans to work in their old age, Mr Tan pointed out that the 65-year-old mark is the “new 50”.

With rising life expectancy and the current low interest rates offered by banks, many older workers have to continue to work beyond retirement to support themselves. Older workers also need to address the rising cost of living, said economists.

Both Mr Tan and Mr Song believe current participation rates of older workers will continue to increase. Mr Tan, however, said there is a limit to how much the rate can increase for older workers, given the medical problems that come with ageing.

Member of Parliament (Bishan-Toa Payoh GRC) Zainuddin Nordin said, moving forward, work is needed to change the mindset of employers and encourage them to accept older workers into their fold. The fact that more elderly are working, he added, is a positive sign that people are beginning to accept such a new mindset.

MP (Nee Soon GRC) Patrick Tay said efforts to encourage women to return to work and drive re-employment are paying off. “We should continue our momentum to help those who are keen and want to work to have a working environment that facilitates that. This can be done with companies embracing flexible work arrangements and building age-friendly workplaces.”

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