Singapore workers struggle to find jobs amid shifting market demands

SINGAPORE: A recent LinkedIn report highlights Singaporeans’ difficulty securing new jobs. In 2024, 61% reported challenges, significantly higher than the global average of 50%. This data underscores the impact of evolving business demands and shifting skill requirements.

The survey, conducted in November and December 2024 with over 1,000 local workers, revealed that many job seekers struggle to find roles that align with their expectations, negotiate fair compensation, and stand out in a competitive labour market.

Skills gap worsens as employers struggle to find qualified talent

The LinkedIn survey published on VN Express illuminates the difficulties employers face. Half of the 500 hiring professionals surveyed stated that identifying qualified candidates had become a more significant challenge in the past year. Alarmingly, only 3.4% of job applications met all the required and preferred qualifications. This signals a growing gap between the skills businesses need and those available in the labour market.

Chua Pei Ying, LinkedIn’s Asia-Pacific chief economist, explained in a Straits Times interview that the shifting dynamics of the labour market reflect a broader trend. By 2030, the skills required for workers in Singapore will have changed by 70% compared to 2016, driven by technological advancements and other factors. Moreover, employers are seeking more than just expertise in tech and finance. Sectors like engineering, sustainability, and food and beverage services remain crucial, as these roles are less likely to be replaced by artificial intelligence.

Salary growth and economic outlook — modest gains ahead

In light of these challenges, compensation remains another area of concern. A report from professional services firm Aon forecasts a 4.4% increase in average pay in Singapore for 2025. However, this figure lags behind growth rates in neighbouring countries like Vietnam, Indonesia, and Thailand. With Singapore’s economic growth projected to slow from 4% last year to between 1% and 3% in 2025, many workers will likely feel the effects of a tightening job market and slower wage growth in the coming year.