Singapore is likely to face a labour shortage as a result of
dwindling manpower supply from major suppliers such as China,
warned labour leader Ong Ye Kung on Thursday.
Speaking at a conference organised by Human Capital Singapore,
the deputy secretary-general of the National Trades Union Congress
explained that major manpower suppliers are holding on to their
workers as they battle their own labour crunch.
As wages rise in China for instance, industries are moving back
to advanced economies like Singapore, driving up demand for workers
here, he said.
"We are, therefore, likely to be at a turning point of history,
from labour glut to labour crunch."
"This presents a whole new challenge to industries in the medium
term -- how to find enough workers and continue to remain
competitive?"
Ong added that many economists believe a slowdown in cheap
labour supply is on the cards, and that it will lead to a reprieve
from current problems due to the influx of such labour, reported
The Straits Times.
He noted that while low-cost foreign workers have helped reduce
business costs, they have also added downward pressure on wages in
labour-importing countries, including Singapore. Those that did not
let foreign labour in also suffered higher unemployment and lower
wages as industries moved abroad for cheaper labour.
Citing figures in a recent Financial Times report that
showed stagnating or falling wages for workers at the bottom and in
the middle in developed countries, Ong noted that real wages have
been rising in Singapore. Increases for the bottom 10-20 percent,
on the other hand, have been modest.
But a labour crunch would also pose challenges to employers, he
told the 300 business leaders and HR practitioners at the
conference.
To tackle them, Ong suggested companies raise productivity
through technology, invest in skills upgrading, and motivate
workers by sharing with them the rewards of productivity gains.
Employers were also urged to be flexible and open in hiring new
workers.
Noting that while some job seekers can be picky, he said the
labour movement has also seen many who are open to lower-paying
jobs in different industries.
"As manpower becomes scarcer, it would make sense for the HR
community to take a hard look at its systems and processes to
ensure it is open and flexible, so as to consider every willing and
able candidate for every position," he said.
-- Yahoo!
