Managing labour crunch amid recovery

Several employers are facing a labour crunch as a result of Singapore's recovery from the economic impact of the coronavirus pandemic. While this would be good news for workers, many of whom saw jobs disappear as Covid-19 spread its epidemiological tentacles across the nation, the shortage has implications for the economy going forward. As business demand picks up, it needs to be matched by a steady supply of dependable labour. Unfortunately, that is not the case. Employers facing a labour crunch took longer to fill open positions last year. The number of job vacancies reached a record high of 114,000 last December, more than double the 53,000 a year earlier.

The issue draws attention to the roles of both professional, manager, executive and technicians (PMET) and non-PMETs. The labour shortage should ease in the coming months as borders open up, more foreign workers in non-PMET jobs are able to enter Singapore, and training and career conversion programmes are enhanced to prepare local PMETs for new jobs. It is important for Singapore to act collectively and quickly. Many workers in service sectors left the country: The foreign workforce here shrank by close to 160,000 workers in the last two years. Employers are keen on hiring workers, but have to contend with intense competition and rising wage costs. Also, even as businesses seek to hire locals, many jobs are not taken up because they do not appeal to Singaporeans.