The urgent need for workforce adaptation amidst technological disruptions
As industries undergo rapid changes due to advancements in artificial intelligence (AI) and sustainability initiatives, upskilling and reskilling have become indispensable for workers to remain competitive. Singapore’s Budget 2024 discussions brought attention to the increasing importance of these initiatives, particularly for mid-career professionals, a group facing significant challenges due to the evolving job market.
Key figures in the ST-BT Budget Roundtable 2024, including Indranee Rajah, the Second Minister for Finance, and economists such as Alvin Liew, emphasized the growing influence of digitalization and AI across industries. These developments require workers to diversify and upgrade their skills. The urgency of reskilling was highlighted by the finding that 52% of surveyed workers anticipate their jobs being transformed by AI. This shift necessitates major investments in workforce training, especially for individuals over 40, a group highly represented in long-term unemployment statistics.
To address these challenges, the Singapore government has introduced measures like the enhanced SkillsFuture credits, aimed at supporting mid-career workers. These initiatives are designed to bridge the gap for individuals who are already employed but need additional training to stay relevant in an increasingly technology-driven world. Minister Rajah pointed out that although workers over 40 may have valuable experience, they face the challenge of upgrading their skills to meet the demands of modern industries.
However, the uptake of these initiatives remains low, especially among workers over 25. Barriers such as financial constraints, lack of time, and doubts about the tangible benefits of training hinder engagement. To overcome these obstacles, businesses are being encouraged to take a more active role in supporting training programs, with some offering incentives for employees who participate. Small and medium-sized enterprises (SMEs) have expressed concerns about the potential labor shortages that could result from employees taking time off for full-time training.
Another critical issue discussed was ageism in the workforce. Despite some reluctance from SMEs to hire older workers, the panel emphasized the importance of matching skills to job requirements rather than focusing on age. The panelists suggested that enhancing training programs with real-world industry experience and certifications would help workers transition more smoothly into new roles and address employer concerns.
Looking ahead, the panelists were optimistic about future government initiatives that could provide further support for integrating new skills into businesses and offer more assistance to employers, especially SMEs. These anticipated changes are expected to foster a more competitive and adaptive workforce, positioning Singapore for continued economic growth despite ongoing technological disruptions.
