Singapore’s GDP grew by 3.6 per cent in 2017 compared to 2.0 per cent in 2016. While productivity recovered strongly to grow at 3.8% in 2017, the average productivity growth from 2011-2016 was 0.5 per cent. Nonetheless, workers enjoyed real wage growth of 3.0 per cent per annum over the same period.
Workforce growth, however, is slowing down. In 2017, workforce size declined by 0.3 per cent but is expected to grow 1-2 per cent per annum for the period 2018 to 2020. However, the employment rate for those in the 25-64 age group was at 80.7 per cent in 2017, a record high. Workers therefore benefitted from near full employment.
At the same time, workforce demographics are changing. Employers have implemented flexible work arrangements and job redesign to meet the diverse needs of workers. Workers are also seeking new forms of work.
In the midst of this, the economy is transforming as companies embrace new business models and digitalisation. Employers and their employees, as well as the unions must work together to tackle these challenges.
Firstly, employers must develop and entrench a lean mindset and do more with less. Lean is all about using fewer resources and optimising the competencies of the workforce to maximise productivity. Workers must learn new skills and adapt to a lean workplace.
Secondly, employers should adopt responsible employment practices to build progressive workplaces to engage their employees. This includes flexible and inclusive HR policies and practices to enable their employees to meet both work and family responsibilities.
Thirdly, advances in technology, such as artificial intelligence and robotics, have the potential to make jobs smarter, safer, simpler and more productive. Employers need to work with employees and unions to tap on these advanced technologies for the benefit of all.
With the Labour Movement by the side of workers and the tripartite partners united with them, companies can successfully transform. This will create new and better jobs and a vibrant economy.
On behalf of our 3,300 SNEF corporate members, I wish all workers a Happy May Day!
