Mature workers, fresh grads may face challenges in jobs market in light of US tariffs: Tan See Leng

SINGAPORE – Mature workers and fresh graduates may face more challenges in the jobs market amid a global economy shake-up, said Manpower Minister Tan See Leng.

Dr Tan was speaking to the media during the first meeting of the Singapore Economic Resilience Taskforce on April 16.

The task force was set up to help affected businesses and workers navigate the uncertainties sparked by US tariffs on Singapore goods. It

will have three work streams,

one of which will focus on identifying the pain points and immediate challenges faced by businesses and workers, and review the measures available to support them.

Dr Tan, who co-leads this work stream, spoke about the vulnerability of mature workers and how companies may choose to downsize or let them go as the Singapore economy slows.

“We are also looking at how we can support the upcoming cohort of young graduates to start their careers on good footing,” he said.

Labour chief Ng Chee Meng, who is co-leading the same work stream, shared the feedback and anxieties faced by union leaders, specifically about the direct impact of the US tariffs on Singapore’s electronics, chemicals, logistics and transport sectors.

A recent straw poll conducted by the National Trades Union Congress found that while about 60 per cent of union leaders believed the US tariffs will impact Singapore, 70 per cent said they have not heard from companies about how they planned to respond or transform. Some 11 per cent reported hearing about potential retrenchments.

It polled 200 union members across the electronics, chemicals, logistics and transport sectors.

Seventy per cent expressed concern over the uncertainty in global trade, and 50 per cent were worried about rising production costs.

“Others have heard about firms starting to freeze hiring, freeze wages or reduce overtime hours due to reduced workload,” Mr Ng said.

Dr Tan urged businesses to take full advantage of the Government’s existing programmes to support the workforce, such as the SkillsFuture Enterprise Credit and the SkillsFuture Level-Up Programme, to retain and retrain workers in preparation for the uncertainty ahead.

For the involuntarily unemployed, he highlighted the

SkillsFuture Jobseeker Support scheme,

which was recently launched to provide them with temporary financial relief of up to $6,000 over six months.

“We are paying close attention to the sectors which are going to be most immediately affected by the ongoing developments, while at the same time anticipating other spillover effects on the rest of the economy,” said Dr Tan, adding that business uncertainty might cause employers to hold back their expansion, and consequently reduce hiring.

“Should there be a turn for the worse, we are prepared to provide even more substantial relief to workers and businesses. For workers, to support entry and re-entry to the workforce, and safeguard their livelihoods and wages if job losses become more severe.”

Singapore National Employers Federation (SNEF) president Tan Hee Teck, who also co-leads the work stream, stressed the uncertainties faced by many employers, especially small and medium-sized enterprises. As they navigate current economic uncertainties, some firms are prudently reviewing their hiring plans and may delay filling non-essential roles, such as certain administrative and back-office positions, he said.

Despite the cautious climate, Mr Tan urged firms to continue hiring and training workers. For those that continue to hire, they could offer contract positions and explore increasing workload efficiency via the use of artificial intelligence, which may help with longer-term productivity growth, he added.

“More than ever, employers and workers need to stay nimble and adaptable. SNEF encourages employers to preserve their human capital and press on with business and workforce transformation efforts so that they can be more agile and prepare for the future, come what may.”