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.'