When growth sectors shed workers, it’s time to mind the gap
Why are industries behind Singapore’s robust economy also pulling back on jobs?
Singapore's economy has seen retrenchments rise to their highest level since the pandemic, even as vacancies have shrunk, according to Ministry of Manpower (MOM) figures. The sectors experiencing job losses include manufacturing, wholesale trade, finance and insurance, and information and communications services. These are also the industries driving Singapore's strong GDP growth.
The main reason for layoffs cited is business reorganisation and restructuring, with employers shifting staff to higher-value roles. However, the number of unfilled vacancies in these sectors has dropped significantly, suggesting a potential mismatch between job openings and the available workforce. Some experts believe that the AI boom is disrupting service employment more than it is creating new jobs, leading to job displacement.
While Singapore's strategy focuses on reskilling workers for AI adoption, the industries that are thriving may be benefiting from reduced labour requirements or betting on AI solutions that might not materialise. If this trend continues, it could pose a threat to Singapore's tripartite model of employer-worker relations, potentially leading to a K-shaped economy where only some sectors and workers benefit from growth.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
