The shortfall will be 350,000 until 2009 due to mismatch
between workers' skills and expectations and jobs available
By Sue-Ann Chia
THERE have always been more jobs created than Singaporeans to fill
them and the trend will continue for some years yet, official
projections show.
Job creation outpacing available local manpower will be such that
there will be a shortfall of 350,000 Singaporeans for jobs until
2009. The projection assumes economic growth of 3 to 5 per cent
annually.
The greatest shortage will be for workers to take up jobs requiring
diploma holders.
Giving these numbers in an update on the job landscape, Acting
Manpower Minister Ng Eng Hen yesterday pinned down the problem that
will also persist: 'There is a mismatch of job seekers against the
jobs that exist in expectations and skills.'
He was speaking during the debate on his ministry's budget, which
had several MPs passionately commenting on the issue of jobs for
Singaporeans.
Dr Ng assured them that there were jobs, but the biggest challenge
was to ensure that the big band of workers with lower than
secondary education - who make up 60 per cent of the workforce -
can remake their skills to take on new jobs.
'If we cannot get Singaporeans to get better jobs, especially the
half million without secondary education, then structural
unemployment will go higher,' he said.
The immediate battle plan, he said, was to 'reclaim' those sectors,
which Singaporeans of all qualifications can be trained to go into,
such as in the marine and health-care sectors.
Dr Ng also responded to various calls by MPs, such as by Ms Irene
Ng (Tampines GRC) asking for an Equal Opportunities Commission to
guard against discrimination and MP Yeo Guat Kwang (Aljunied GRC)
urging the Government to ensure firms hire Singaporeans first
before foreigners.
The minister acknowledged that it was the 'Government's
responsibility' to help Singaporeans get a job and earn a
livelihood.
But he made clear that the solution was not in introducing
protectionist legislation. Rather, it must lie in creating a
flexible labour market.
'If introducing laws that make it harder for companies to
right-size, to keep wages up, and to keep foreign workers out can
ensure jobs for Singaporeans, then the solutions would be obvious
and, in fact, easy to do,' he noted.
But experiences from other countries, which have rigid labour laws,
have proven otherwise resulting in high unemployment, he
noted.
Instead, he cited the experience of the United States, which allows
firms flexibility in hiring and firing and does not overburden them
with mandatory leave or benefits.
As such, companies can respond quickly to external changes, sieze
new business opportunities and move out of unprofitable areas, he
said.
'This market flexibility, which at face value appeared harsh, in
fact accorded more job and income security for not only the more
employable, but indeed for all,' he said.
Now, in the face of a rising global trend of outsourcing, he noted,
these issues were even more critical.
'The best way to protect ourselves and jobs for Singaporeans, is
not to shut out competition, but to meet it head on,' he said, and
listed four ways to do so.
First, by offering 'value plus': 'We can never be cheap but we can
moderate the costs to do business here by keeping statutory burdens
low and adding value... We need to give companies the flexibility
to respond and the wage restructuring efforts should be seen in
this light.'
Second, by having 'systems OK': Making sure the excellent
infrastructure continues and improves.
Third, by having a highly trained local workforce and access to
foreign workers. And lastly, leveraging on Singapore's harmonious
union-management relations.
'With this strategy, we have created growth in the past and will
continue to do so. Singaporeans need not lose heart.'
But the rallying call also came with a word of caution: 'There is
one thing that the Government cannot promise: and this is to
provide only jobs...that are appealing and attractive to
Singaporeans. No government can promise that.'