EMPLOYMENT CHALLENGES AND ISSUES FOR 2017 IN SINGAPORE

EMPLOYMENT CHALLENGES AND ISSUES FOR 2017 IN SINGAPORE

A fresh new year is once again upon us. What is the employment scenario like for Singapore in 2017? What are the employers’ hiring intentions for the year? Will there be better days for those seeking decent paying jobs? Will the economic downturn experienced in 2016 be worse in 2017 and thus causing upheavals in the job market?

2016 Employment Market Overview

Unemployment rate and lay-offs hit a 7-year high. An estimated 68 300 residents – of whom 60 300 are citizens were out of work. Over 12 100 employees were retrenched for the period Jan to Sep 2016. More lay-offs are expected in the last quarter 2016.

Companies in the oil and gas, marine and the financial services sectors, bearing the brunt of the economic downturn, slashed the most number of jobs. HRM Asia cited banks like Standard Chartered, Barclays, Royal bank of Scotland, Credit Suisse, Deutsche Bank exercised mass layoffs. Marine industry giant, Keppel, revealed it retrenched some 660 employees between June and September. Maersk shed 4000 jobs worldwide. Hospitality and casino operator, Resort World Sentosa, axed 400 jobs in June. Inchcape, Toyota and Suzuki distributors, joined the fray and released 120 staff including its CEO for South Asia.

Other big boys reducing headcounts included Yahoo, Rakuten, Goldman Sachs and the list goes on.

Retrenchment and unemployment figures released by the Singapore’s Ministry of Manpower (MOM) confirmed the labour market is at its worst since 2009 in the 3^rd quarter of 2016. The seasonally adjusted overall unemployment rate rose from 1.9% in March 2016 to 2.1% in June 2016. The MOM has not released the statistics for the last quarter.

Economic Outlook for 2017

Will Singapore face a gloom and doom front in 2017? Not quite. Judging from the assessment by the IMF (Article 4 assessment), Singapore’s economy will not shrink and is expected to grow by 1.7% in 2017, supported by accommodative fiscal and monetary policies. Low energy prices and the ongoing global recovery can also help. In the near term, however, risks are skewed to the downside. Slower global and regional growth, global financial volatility and growth of political populism are hindrances to growth.

2017 Employment Market Landscape

According to survey polls, recruiting consultants and employers are cautiously optimistic about employee hiring plans in 2017. A survey among 620 employers found that 15% intended to hire and increase headcount, 7% planned to decrease and 71% expected no change. Another survey by a leading recruiting firm found that 36% of Singapore companies were planning to increase headcount in 2017.

The hiring outlook for 2017 is likely to be buoyant, partly, because the Government is proactively investing in three key industries – digital, information technology and healthcare. Hence, employers across these three sectors are likely to continue actively hiring to fill newly-created positions.

It is also noted that though employers are still hiring, they are more precise, discerning and cautious in their hiring practices. They seek out potential employees with specific talent who can add value and contribute aggressively to their bottom line. The focus is hiring the right talent.

Rather than fighting for a small pool of specialised talent in the open market, employers prefer spending money and resources equipping their existing workforce with the necessary tools and skills. Employers have lamented frequently about Singapore’s small talent pool.

On the wage front, recent salary forecast surveys indicate that more than 75% of employers are likely to implement salary increments in the new year, albeit moderately.

Whole New World for Job Seekers and Career Changers

For starters, brace yourself for some tough, challenging times ahead. If you are out of work for some time or fresh out of polytechnic or university, you need to try understand yourself better and what you have to offer to the world of work.

The job market has changed dramatically. Jobs don’t last very long and job security is more of a myth. Full time jobs are getting harder and harder to find. There have been a dramatic increase in the number of part-time, temp or contract jobs

Job hunting has become part of one’s job and is increasingly becoming a repetitive activity for the majority of job seekers.

You have to adapt to an ever evolving job hunting methodology. Job hunting has moved more and more online. Networking and social media have become a fantastic source of career information and job opportunities.

Next, you need to deal with any handicap that you may have. Lack of specific technical skills is one such handicap. The Singapore Government regularly reminds Singaporeans about the importance of   upgrading their skillsets through state-driven initiatives such as the Skills Future Credit Scheme. So, take advantage of such offerings. Another problem with Singaporean job seekers is their prejudice against small and medium enterprises (SMEs). Many are still unwilling to take up jobs in SMEs thinking that these firms offer little career prospects, lower pay and perks.

Finally, survey findings including media releases from MOM about hiring intentions can be dizzying. You may not find comfort though 2017 holds a brighter and more promising future. The real challenge when you are out job hunting is moderating your expectations. The onus is now on you – only you can make that difference.

Successful Resumes Singapore

Career Management Institute

www.successfulresumessingapore.com