New structural gaps are appearing in the workforce even as economy continues to grow: Ng Chee Meng
NTUC is “clear-minded” about disruption caused by AI, and must be able to prepare the workforce to be relevant, he said.
Singapore's labour chief Ng Chee Meng has highlighted emerging structural gaps in the workforce, despite the country's ongoing economic growth. Retrenchment rates have surged, reaching rates similar to those experienced during the Covid-19 pandemic, while the economy has been growing at an average of 5% per annum over the past three years, according to Ng.
The surge in retrenchments - which peaked at 4,620 in the second quarter of 2026 - could be attributed to workforce restructuring driven by advancements in artificial intelligence (AI), Ng suggested on October 22. Another pressing concern is the prolonged job search faced by fresh graduates after completing their studies. To address these issues, Ng urged both companies and workers to collaborate with the labour movement to explore the potential of AI technology.
At the launch of a new partnership between NTUC and KPMG, Ng announced plans to establish a programme to assist companies in workforce transformation and AI adoption. Companies can access two grants, namely the NTUC company training committee grant and the Enterprise Workforce Transformation Package, to fund the various stages of the programme, known as 'Jumpstart Your Workforce Transformation'.
NTUC LearningHub and KPMG have also committed to developing six AI-related courses, covering topics such as AI applications in sustainability and finance. NTUC has already demonstrated success in implementing this model through its company training committees, which bring together management and union representatives to identify required skills and devise appropriate training and job changes.
Ng expressed optimism about scaling these initiatives to ensure that AI adoption in Singapore does not result in 'jobless growth'. He also stressed the need to prepare the workforce for the AI-driven economy, protect those unable to adapt, and provide avenues for those who cannot to transition to other jobs. Furthermore, Ng suggested that Singapore's education system should reevaluate the skills being imparted to equip students with the agility and resilience needed to thrive in the rapidly evolving technological landscape. Companies can apply to the new initiative from October 22.
Written by urgent.news from Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
