New unemployment payouts help some workers, while others struggle to qualify
Singapore’s first unemployment benefits scheme has offered meaningful relief to thousands of jobseekers, but strict eligibility rules are also leaving many applicants without support at a time when re-employment remains difficult.
More Than 4,000 Approved, But Most Applicants Were Rejected
In 2025, more than 10,000 applications were submitted for Singapore’s SkillsFuture Jobseeker Support scheme, but only over 4,000 unemployed Singaporeans were placed on the program. Workforce Singapore said more than 80 percent of those accepted received at least one payout by the end of the year, showing that the scheme is functioning as a real financial bridge for successful applicants.
The payouts can reach up to S$6,000 over six months, provided recipients complete enough job search activities to earn points, such as attending career fairs and meeting career coaches. The scheme started in April 2025 for Singaporeans and expanded to permanent residents in the first quarter of 2026.
Why So Many Applicants Did Not Qualify
Eligibility rules remain the biggest reason for rejection. The most common issue was that applicants were assessed as not being involuntarily unemployed, including those who resigned on their own. Other disqualifying factors included having an average previous monthly income above S$5,000 and not meeting the requirement of having worked at least six months in the past year.
Earlier data from Parliament showed a similar trend. Between April and August 2025, over 7,200 Singaporeans applied, but around 60 percent were rejected. Only about 2,900 applications, or 40 percent, were approved in that period. The Manpower Ministry said the scheme is intentionally targeted at lower and middle income adults who lost their jobs due to retrenchment, business closure, dismissal, or health-related termination.
Contract Workers and Older Jobseekers Face Uncertainty
One of the most debated issues is whether contract workers are fairly covered. The Jobseeker Support scheme is generally not targeted at workers whose contracts simply expire without renewal, because the government considers contract acceptance and renewal uncertainty part of the nature of such work.
Still, Workforce Singapore clarified that contract workers can qualify if they can prove involuntary job loss, such as premature contract termination. This includes employees on probation who can show they were let go involuntarily. The distinction is important, but in practice many workers remain unsure if they qualify and do not apply at all.
Long-Term Unemployed Are Often Excluded
The rule requiring applicants to have worked at least six months in the previous year effectively excludes many long-term unemployed people. In 2025, Singapore had about 14,600 long-term unemployed residents who had previously held jobs, and many of them were not eligible under the scheme’s current design.
Economists have pointed out that long-term unemployment can become self-reinforcing, especially for older workers. Employers may treat long periods without work as a negative signal, while jobseekers themselves can lose confidence after repeated rejections. Experts say these workers often need more intensive interventions, including targeted reskilling, structured job matching, and wage support, rather than temporary cash alone.
Financial Support Helps, But Re-Employment Is Still Hard
For those who qualify, the payouts have helped reduce stress and improve focus during job searches. Some beneficiaries said the scheme gave them enough financial breathing room to avoid rushing into poor job offers and instead spend more time on training and targeted applications. Others described how the support helped them stay motivated despite repeated silence from recruiters.
At the same time, the emotional toll of unemployment remains high. Jobseekers shared that while the money was useful, it did not fully solve deeper challenges such as weak professional networks, lack of relevant openings, and discouragement after months without success. This has fueled calls for stronger coaching, better job matching, and more flexible support pathways.
Calls to Review the Scheme Are Growing
Labour groups and analysts have suggested revisiting the S$5,000 salary cap, with some proposing a higher threshold of S$7,600 to better reflect the income realities of professionals and mid-career workers. The Ministry of Manpower has said it will review the scheme after gaining more operational experience, including whether key parameters such as income eligibility should be adjusted.
The government has also stressed that the Jobseeker Support scheme should not be viewed in isolation. It is meant to complement broader programs like career conversion initiatives and other SkillsFuture pathways that help workers transition into new roles.
Singapore’s Jobseeker Support scheme has proven that unemployment benefits can provide meaningful short-term relief, but the first year of implementation also shows clear coverage gaps. Contract workers, long-term unemployed individuals, and some older jobseekers remain at risk of falling through the cracks under current rules. For Singaporeans, refining the scheme could improve workforce resilience in a more uncertain economy. For Indonesians and Singaporeans alike, the policy matters because Singapore’s labor market stability affects regional hiring demand, cross-border business confidence, and the broader economic outlook in the region.
Sources: CNA (2026) , The Straits Times (2026)
Keywords: SkillsFuture Jobseeker Support, Workforce Singapore, Nicholas Kong, Tan See Leng, Long Term Unemployed, Contract Workers
