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 3rd 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
