Addressing the skills mismatch in tech jobs in Singapore

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Are robots and other AIs about to rob us of our jobs in the near future? Judging by the latest statistics, it looks like we are headed that way.

In a recent report, the International Federation of Robotics (IFR) found that more than 40,000 professional service robots were sold in 2015, a 25 percent increase from 2014. This upward trend should come as no surprise as technology continues to advance rapidly. However, it should be a deep concern in a country where a competitive workforce and a low unemployment rate is a great asset.

Skills gap as a result of rapid technology development

The main problem now is disruption. The fourth industrial revolution driven by technology is happening now and creating an economy where disruption is prevalent. This has created a skills gap for both young and experienced workers.

Prime Minister Lee Hsien Loong talked about it in his speech at the National Day Rally in 2016: “Old models are not working, new models are coming thick and fast, and we’re having to adjust and to keep up, because of technology and globalization. And the disruption will happen over and over again, relentlessly.”

Deputy Prime Minister Tharman Shanmugaratnam reinforced this point by stating, “Technology is replacing tasks and jobs […] [There is] the real shortage of skills, and a shortage of people to fill jobs […] Everyone has to think about using technology, using data, and using them to augment our own abilities.”

There has been an exploding demand for innovation and entrepreneurial skills that cannot be replaced by technology. But due to the small talent pool in Singapore and the inability of schools to produce students with the right skills, the society is not able to meet the economy’s demands. This results in an increasing rate of structural unemployment where many jobs are unfilled due to the lack of skilled individuals in those areas.

Even at the university level, the curriculum is trapped in old-fashioned models of extensive teaching and researching. It may not be relevant in the future at the rate the word faces disruption today.

The Future of Jobs report also stated that the biggest problem that plagues many countries today is the challenge of aligning education and training to changing job profiles. Hence, there is a need to shift and restructure education in order to address the mismatch of skills due to rapid technology advancements.

Shifts in global workforce trends

The World Bank found that stagnant global trade, subdued investment, and heightened policy uncertainty contributed to a low post-crisis global growth of 2.3 percent, calling to attention a serious matter that is in need of a quick resolution.

In today’s economy, soft skills have become especially important. With many operating jobs being replaced by machinery or artificial intelligence, some jobs are in danger of becoming obsolete. What should employers require and value, therefore, are skills that cannot be obtained from machines. These skills include effective communication, teamwork, leadership skills, initiative, problem solving, creativity, persistence, and curiosity.

Growing up in a rigid education structure, many students in Singapore are not trained to think outside the box, thus their creativity and innovative skills are found wanting. Quite notably, the recent World Economic Forum (WEF) rankings showed that Singapore had fallen in rankings on innovation and sophistication, two key areas that are pertinent to economic success in the technology-driven world today. This may not necessarily mean that Singapore is worse than before, but it may indicate a collective worldwide movement where countries strive toward becoming more innovative and sophisticated.

Acting to counter skills mismatch

The Straits Times has found that in Singapore, the unemployment rate rose to 4.3 percent in June 2016, a 0.8 percent increase from the same period the year before. One of the biggest problems reported was the huge skills mismatch between job seekers and employers. Technology workers such as software engineers and digital marketers were in high demand, yet the supply of graduates from polytechnics and universities were not big enough to match this demand.

Some university graduates also proved to be ill-equipped with real-life skills, as their schools lacked in teaching them more than what textbooks could. This is a real problem that the society is currently facing. The importance of internships and part-time jobs to learn and develop skills have not been emphasized enough as well.

In summary