Private employment crucial to Singapore's tight labor market
Three-quarters of organisations using private employment services accelerate faster out of a downturn, says a report.
The Singapore Staffing Association welcomed the report titled ‘Adapting to Change’ authored by the International Confederation of Private Employment Agencies and The Boston Consulting Group. Launched in Singapore, the report examines the contribution staffing companies make in helping people to adapt and find meaningful employment through different economic cycles.
Singapore Staffing Association, President Dhiren Shantilal said, “As the Asia Pacific region continues to battle for talent, countries like Singapore with its educated and experienced workforce have the advantage of building talent hubs locally and regionally. Private employment agencies accelerate this process by providing companies with the resources and networks to identify and help attract the right talent for companies to grow. The report ‘Adapting to Change’ highlights the social and economic value of private employment services.”
The findings of the report reveal the potential of private employment services for enabling adaptation to seasonal, structural and cyclical changes in the labour market. Report findings reveal that three-quarters of organisations using private employment services accelerate faster out of a downturn.
EuroCiett President, Annamarie Muntz said, “This report recognises the vital role private employment services play in adapting to challenging economic times and building social and economic progress. The report demonstrates that private employment services create jobs that would not otherwise exist. For example, three-quarters of organisations do not consider hiring permanent workers as an alternative to agency work. In fact, private employment services reduce structural unemployment – by creating more work opportunities for more people – as well as frictional unemployment by ensuring a better and faster match between supply and demand of work.”
“Singapore is experiencing a tight labour market, with specialised skills in sectors such as information technology and healthcare in short supply. Indeed, around the world labour markets are facing unprecedented challenges. Globalisation, demographic and structural shifts, coupled with the unpredictability and increasing complexity of economies have led to a volatile new environment in which labour markets are in perpetual motion, constantly creating and destroying jobs.
“The private employment services industry has a crucial role to play in connecting the needs of business with the capabilities of individuals; to drive increased labour market participation and facilitate social dialogue as a way to promote decent work. To do this we must first cultivate the right environment and level of appropriate regulation,” Ms Muntz said.