Look Ahead 2024: Amid global tensions and uncertain job market, youth urged to stay agile by upskilling
Source: TODAY
SINGAPORE -- With global political tensions and economic uncertainty in 2023 carrying over into the new year, experts say the job market in the year ahead is uncertain but young workers can look out for some bright spots.
The ongoing conflicts in Ukraine and Gaza, alongside tension between the United States and China, may keep companies erring on the side of caution when it comes to hiring and salary increments although an expected stronger economy at home might give the job market a push.
Experts said retrenchments in the tech space in 2023 -- such as by Google, Meta, WeWork and Spotify -- are unlikely to continue into the new year. However, some said that companies may opt to stabilise their headcounts or to not fill vacancies arising from natural attrition.
Job demand in certain areas is also to increase, spurred by advancements in artificial intelligence (AI) and the growing expectations for companies to be sustainable.
As for workplace trends, experts forecast more companies to look to hire remotely, alongside the continuing demand for flexible work arrangements.
ChatGPT and AI were hot topics for 2023, with many companies looking into integrating the technology into their workplaces. With such advancements poised to continue, human resource (HR) experts told TODAY that demand for labour will be high in this sector.
But in turn, industries and functions impacted by AI, such as business outsourcing will struggle in 2024 and beyond, said Mr Rahul Chawla, partner and head of talent solutions for Southeast Asia at Aon.
Companies that also cannot satisfy customer and stakeholder requirements on transitioning to green energy and renewables will also face challenges, he said.
Other experts added that those in the renewable energy sector will see expansion as companies seek to meet these growing sustainability requirements.
Industries heavily affected by global uncertainties like oil prices, supply chain disruptions and political tensions may also struggle, said Ms Shalynn Ler, general manager at HR firm Ethos BeathChapman.
These include those in the manufacturing and oil industry, where labour demand might be low and some companies may look at reducing their headcount.
Experts had mixed thoughts about the retail sector, with some speculating that inflation has left many shoppers tightening their wallets while others said that a tourism boom would see the sector expand.
Group chief executive officer of HR firm Reeracoen Kenji Naito said sunrise industries -- like transport, logistics, healthcare, finance, and consumer services -- are anticipated to hire actively.
"Workers in declining sectors are encouraged to pivot to related fields, enhancing digital skills for smoother transitions," he said.
"Adaptability and continual upskilling remain crucial in navigating Singapore's dynamic labor market and it is crucial for youths to diversify their skill sets and consider industries with growth potential."
He added that beyond seeking mentorships, networking and upgrading skills, staying informed about global events will help young professionals make "informed career decisions".
Ms Ler of Ethos BeathChapman said that following major retrenchments in the technology space in 2023, things look set to stabilise somewhat.
"For any cuts that may be needed, companies may look at natural attrition and not replace those headcounts rather than making major cost cuts (as) they did in 2023," she said.
When it comes to the industries that may face more struggles and uncertainties this year, retrenchments might be expected and commonplace, said chief executive of consulting firm Career Agility International Adrian Choo.
"(Be) mentally prepared for this outcome, but remember there's no stigma to being retrenched, it's part of worklife now," he said, adding that it is important to be agile and have several career plans and options.
Even if retrenchments should take place, Ms Ler said young workers are safer than their older counterparts as companies tend to do retrenchments top-down, starting with senior employees at higher ranks.
"Moreover, younger employees may exhibit a faster reemployment rate than their senior counterparts, influenced by their salary expectations," she said.
However, Ms Ler gave the caveat that youths should still be proactive in upgrading their skills to stay competitive in the job market.
When it comes to the size of pay packets, Mr Joshua Yim, founder and chief executive officer of Achieve Group, said companies will be more conservative given the uncertainty, similar to in 2023.
"In 2022, we saw salary increments go up as high as 20 per cent in some industries. But this is very unlikely (in 2024) as companies are likely to err on the side of caution," he said, adding bonuses will also not be as "generous".
Aon's 2023 Salary Increase and Turnover Report said that salary increments in Singapore are expected to "stay flat", with a salary increase of about 4 per cent expected -- the same percentage increase as in 2023.
For job-hunting youths, Mr Chawla said they need to be resilient and take a long-term view of their careers and warned them against being too focused on salary.
"Look for opportunities which offer a platform where they can hone their skills, build careers at firms which offer competitive pay," said Mr Chawla. "Disproportionate focus on pay can result in missing out on the big opportunities in the long term."
With a slowly improving economy clouded by various uncertainties, companies seeking to lower their costs and ensure they hire the right employees with the needed skills will drive a growing number of remote work job opportunities in 2024.
A survey in 2023 by global HR platform Remote found that 44 per cent of businesses globally are seeing a surge in full-time employees located overseas. Over 1,000 HR, business decision-makers and employees in Singapore, India, Australia and New Zealand were surveyed.
"In the face of economic headwinds, access to global talent and opportunities will help to broaden the playing field," said Mr Marcelo Lebre, president and co-founder of Remote.
But while there will be no shortage of opportunities for Singaporeans looking for careers remotely, Mr Lebre said job seekers will face stiff competition "as remote roles are in high demand and can receive thousands of applications per role".
HR experts also told TODAY that with more Gen-Zers entering the workforce and increasing focus on the employee experience, the trend for work-life balance and flexible work arrangements will continue in 2024.
These trends are why several soft skills will be "increasingly crucial" for youth, said Mr Naito of Reeracoen.
"For instance, essential skills such as negotiating common ground among multiple parties, adept facilitation, effective leadership, and the interpersonal communication and empathy skills that uniquely motivate individuals will be in high demand... in the future with the evolution of technology."
