What this lesson teaches
I can explain how governments support people and firms to cope with the economic impacts of globalisation.
Syllabus K336, Issue 3, Guiding Question 2, Responses to economic impacts of globalisation. Government support
Make a guess
A worker's hours are cut during a crisis. What kind of government help do you think they need first?
- Short-term help with bills first, then training for the future.
- A training course, starting the next day.
- Little, because the market usually fixes such problems quickly.
Show the answer
Short-term help with bills first, then training for the future.
Relief and adjustment meet different needs. The Jobs Support Scheme helped firms keep paying workers during COVID-19.
Short-term help cushions people and firms through hard times, while training helps them adapt for the future.
Picture a worker whose hours are cut. First, they need help paying this month's bills. Later, a training course could improve their future job prospects. Short-term relief and long-term adjustment meet different needs.
In a crisis, governments can give targeted cash to households, wage support to employers and help with business costs. Wage support helps firms keep paying staff while they adjust. During COVID-19, Singapore's Jobs Support Scheme helped employers keep paying workers.
For the longer term, employment services connect people to vacancies, meaning available jobs. Training subsidies, public money that lowers course costs, make new skills easier to gain. SkillsFuture gives Singaporeans credits for approved courses.
Help must fit the barrier. Cheaper courses do not help someone who cannot afford unpaid time off, has no childcare or cannot attend at the set times. Government, employers and training providers can tackle these barriers together.
Public budgets are limited. Short-term help cannot bring back lost demand or protect every job forever. Long-term help works only if the training is suitable, employers take part and there are real jobs for the new skills.
- Short-term help
- Cash, wage support, help with business costs.
- Long-term help
- Training and job-matching, such as SkillsFuture.
- Example
- Jobs Support Scheme during COVID-19.
Real examples to use
Jobs Support Scheme
During COVID-19, the government paid part of workers' wages so companies could keep them employed.
SkillsFuture Credit
Every Singaporean aged 25 and above receives credit to pay for approved courses, so workers can learn new skills as jobs change.
Workfare Income Supplement
Lower-wage workers receive extra cash and CPF payments, which support their income while encouraging them to keep working.
Worked example: Keeping staff while the business changes
A printing company loses a big overseas contract. A government agency gives it wage support for a few months while staff learn packaging-design software and the company finds new orders.
- Wage support keeps workers employed in the short term.
- Training prepares them for new work.
- Together they help the firm adapt instead of closing. But support cannot supply new customers: its lasting value depends on the firm winning new work.
Watch out for this
Once training fees are paid, everyone can train and find a job.
People may still face barriers such as lost income or caring duties, and there must be jobs that need the new skills.
Check your understanding
What is the difference between wage support and SkillsFuture credits?
- Both pay workers during a crisis, but SkillsFuture pays a larger amount each month.
- Wage support cushions a shock now; SkillsFuture builds skills for later.
- Wage support is for workers who lose jobs; SkillsFuture is for those still in work.
Show the answer
Wage support cushions a shock now; SkillsFuture builds skills for later.
Right. One cushions a shock; the other helps people adapt.
Check your understanding
How did the Jobs Support Scheme differ from SkillsFuture Credit?
- The scheme helped unemployed workers; the credit helped firms keep their staff.
- The scheme paid part of wages to keep jobs; the credit pays for training courses.
- Both paid wages during COVID-19, but SkillsFuture Credit paid more to older workers.
Show the answer
The scheme paid part of wages to keep jobs; the credit pays for training courses.
One protects jobs during a shock; the other helps workers adapt.