SINGAPORE, June 6 — It could take up to a decade or more for the world to recover to pre-crisis unemployment levels, with the Covid-19 pandemic causing immense human and social costs beyond the economic impact.

And along with fears of an entire generation having their skills, employability and incomes permanently affected, Deputy Prime Minister Heng Swee Keat took pains yesterday to stress that the Singapore government is making an "unprecedented” effort to prevent a "Covid Generation” of workers and students in Singapore.

"(The Singapore government) has mounted a strong response, because lives and livelihoods are at stake,” Heng said as he wrapped up the debate on the S$33 billion (RM101.2 billion) Fortitude Budget, which was also passed in Parliament yesterday.

Referring to the Singapore government’s move to set aside about S$2 billion to create nearly 100,000 jobs, traineeships and training opportunities, he added: "Never before in our history have we set out to preserve so many jobs as well as create so many new opportunities.”

In the last four months, the Singapore government has unveiled the national budget and three supplementary budgets to help the economy cope with the pandemic, committing S$93 billion in all to the effort, or close to 20 per cent of the nation’s gross domestic product.

Of this amount, S$72 billion will go towards helping workers keep their jobs and supporting business and their employees.

During the 2003 severe acute respiratory syndrome (Sars) epidemic, Singapore recorded its annual highest unemployment numbers, with 91,000 unemployed residents.

The impact of the Covid-19 pandemic is widely expected to be more severe than Sars, with the number of unemployed residents potentially rising from around 73,000 last year to above 100,000 this year, Heng said.

"The economic fallout of Covid-19 goes beyond unemployment numbers. Even those who keep their jobs may suffer under-employment and significant income loss.” 

This could lead to a vicious circle where income loss reduces consumption and affected businesses could further reduce labour demand, he said.

"This was why, when Covid-19 struck, our top priority is to provide fiscal resources to help workers stay in their jobs.” 

The 100,000 new opportunities will be created via several initiatives: