Singapore’s President Calls for Urgent Reforms in Education and Training to Tackle Employment Challenges

At the Economic Forum in Davos on January 22, President Tharman Shanmugaratnam issued a stark warning about the future of global employment. He revealed that over the next decade, 1.2 billion workers will enter the labour market, vying for just 400 million available jobs. This disparity, he cautioned, could lead to widespread underemployment, rising unemployment, or an influx of workers into the informal economy, potentially leading to social instability.

President Tharman described this looming crisis as more than a mere jobs issue, labelling it a “crisis of social compact.” He explained that the challenge extends beyond economic concerns, touching upon the erosion of hope, self-worth, and dignity among workers, which could undermine societal cohesion. To address this, he called for comprehensive reforms in education and training systems, stressing that investing in human potential from a young age is key to preparing workers for future labour market shifts. “The way we develop human potential throughout life shapes not just job performance but also adaptability in a changing job landscape,” he remarked.

The President also raised concerns about the failure of traditional academic education to meet the growing demand for technical and vocational skills. Universities, he argued, often focus too heavily on academic qualifications, leaving many graduates without the practical skills required for today’s job market.

Adding to the complexity, President Tharman highlighted the disruptive impact of Artificial Intelligence (AI), which is expected to automate a significant number of jobs across various industries. He urged both the public and private sectors to step up investment in reskilling efforts to help workers remain relevant in the face of technological change. Drawing from examples in Germany, South Africa, and South Korea, he emphasised the importance of retraining programmes for workers displaced by automation.

Furthermore, the President stressed the need for stronger protections for workers in the informal economy, particularly in developing nations. In Singapore, for example, gig workers are entitled to compensation for workplace injuries and social security contributions, a model that he believes should be adopted more widely to provide better security for vulnerable workers.

In closing, President Tharman urged governments and businesses to work together, ensuring that economic and business strategies are aligned with the goal of creating lasting opportunities for workers to thrive. “The success of the future workforce depends on the opportunities we create today,” he concluded.