Maximising Workforce Potential in an Ageing Society
With an ageing workforce, low fertility and limits to immigration, Singapore’s workforce growth is set to taper off. Ageing will also increase demand for healthcare and aged care services, which could see manpower shortfalls in the economy and particularly in essential service sectors.
These shortfalls may be plugged by increasing the inflow of foreign workers or using automation. However, high foreign worker dependence could reduce economic resilience, as the COVID-19 pandemic has underscored. In Singapore, land and population constraints also limit overall immigration. Automation and AI can help to boost productivity, but will not be able to substitute for people in tasks requiring manual dexterity or empathy.
Hence, it is critical to unlock the full potential of the local workforce, in several ways.
First, jobs should be transformed to attract local workers and maximise human potential. Improvements in pay, work conditions, job image and recognition are necessary in essential service sectors that are less popular among locals. Across the economy, redesigning jobs to combine cognition, skills and empathy will make them more fulfilling and attractive, and less prone to obsolescence.
Second, it is important to increase labour participation through flexible work and inclusive workplaces. Older workers may be attracted to jobs that allow them to contribute at a pace and intensity they are comfortable with, while inclusive workplaces can facilitate the employment of persons with disability. Likewise, homemakers and family caregivers could benefit from flexible work arrangements.
Finally, it is necessary to equip workers to take up good jobs and thrive in their careers. As skills demand are continually evolving, workers will need strong foundational skills and a growth mindset to be able to acquire new skills throughout their working lives. Helping people find meaning and self-actualisation in their work will contribute to a happier and more productive society.
What more can be done to meet manpower needs as Singapore’s workforce plateaus?
