SINGAPORE - The longstanding gap in unemployment rates between lesser- and higher-educated workers is narrowing, new figures reveal.
In the last decade, jobless rates for residents with no higher than secondary education have generally been one to two percentage points higher than for those with diplomas or degrees.
This gap all but closed last year, according to figures from the Ministry of Manpower (MOM).
The unemployment rates for those with primary education and below, lower secondary and secondary education were 2.5 per cent, 2.8 per cent and 2.9 per cent respectively, similar to those with diplomas and degrees: 2.8 per cent and 2.7 per cent respectively.
"The improvement in unemployment for the less educated was supported by strong demand for low- and mid-level workers," said the MOM in its report.
Economists told The Straits Times that factors such as a tighter foreign labour policy could have contributed to this.
Since 2009, the Government has introduced stricter quotas and higher levies, which apply largely to lower-skilled foreigners. Though the qualifying criteria for higher-skilled foreigners on Employment Passes has been tightened, they do not face quotas or levies.
"Employing locals to fill the manpower shortage or gaps looks like the logical stop-gap measure," said OCBC economist Selena Ling.