Written Answer by Mrs Josephine Teo Minister for Manpower on Jobs being made obsolete due to AI and downsizing

NOTICE PAPER NO. 1286 OF 2018 FOR THE SITTING ON 07 AUG 2018

QUESTION NO. 2155 FOR WRITTEN ANSWER

MP: Mr Saktiandi Supaat

To ask the Minister for Manpower (a) how many jobs have been made obsolete since 2016 because of artificial intelligence; (b) how can support networks be strengthened for those who are retrenched; and (c) whether the Ministry will offer support to encourage businesses to retrain and offer new opportunities to the affected employees.

NOTICE PAPER NO. 1286 OF 2018 FOR THE SITTING ON 07 AUG 2018

QUESTION NO. 2156 FOR WRITTEN ANSWER

MP: Mr Saktiandi Supaat

To ask the Minister for Manpower with global trends of companies downsizing (a) how many Singaporeans working in MNCs have been affected since 2017; and (b) what is the job market outlook for the rest of 2018 and 2019.

Answer

1. Overall, the number of local retrenchments fell from about 11,000 in 2016 to about 9,000 in 2017. This is based on surveys of establishments with at least 25 employees. We do not specifically track retrenchments from Multi-National Corporations (MNCs), but these companies are included in our surveys. Over the same two years, close to 70% of local retrenched workers were displaced due to company reorganisation and restructuring of business processes, which in some instances may include the adoption of new technologies to automate job tasks.  However, new jobs were created at the same time. In particular, local employment grew by 11,200 in 2016 and by a further 21,300 in 2017.

2. The impact of technology on jobs is often mixed. While it may reduce manpower reliance in some areas, growing companies still have to hire more to fill other jobs. For example, Amazon hired more staff even as it introduced more robots in its business operations. Likewise, an industry may be shrinking due to technological disruption, but other industries may be growing in its place. Technology could also boost productivity, enabling higher wages for those with the skills to work with or alongside technology. 

3. While keeping an eye on the impact of technology including artificial intelligence, the government’s priority is to help workers stay in employment by keeping their skills current, or get back into employment quickly if they are displaced. Through the Adapt and Grow (A&G) initiative, Workforce Singapore (WSG) and NTUC’s Employment and Employability Institute (e2i) offer employment facilitation services such as career coaching, employability workshops, job fairs and job matching. The Professional Conversion Programmes (PCPs) and Place-and-Train Programmes provide wage and training support for employers to re-train workers to enter new occupations or sectors. The Career Support Programme (CSP) encourages employers to give opportunities to mature, retrenched PMETs by providing wage support.  In 2017, the A&G initiative helped place over 25,000 jobseekers, about 20% more than in 2016.

4. Where possible, it is better to intervene upstream, before workers are retrenched. Together with the economic agencies, WSG engages companies on their transformation plans and manpower needs, so as to support them in reskilling and redeploying employees in jobs at risk, into new job roles. Last year, about 500 at-risk workers were retrained for new job roles through re-deployment PCPs. WSG will make a bigger push in sectors that are restructuring.

5. Looking ahead, real GDP growth for 2018 is expected to be between 2.5% and 3.5%. We thus expect overall labour demand to expand, but with some unevenness across sectors.  Job opportunities will be available in the Services sectors, including Finance & Insurance, Info-communication & Media, Healthcare, Professional Services and Wholesale Trade. However, hiring is expected to remain cautious in the Construction and Marine Shipyard sectors.