In Focus
ECONOMY | Staff Reporter, Singapore

Singapore has one of the most balanced labor markets in Asia

According to Hays Globals Skills Index 2012.

Singapore scored a 5.1 in the overall index scores, with 5.0 indicating a generally balanced picture for labour markets.

According to Hays, a score above the mid-point of 5.0 suggests that employers are witnessing difficulties finding the key skills they need and are suffering market friction, meaning Singapore is experiencing a slight tightness. Whilst a score below 5.0 indicates a lax labour market in which there are no major constraints on the supply of skilled labour.

Of the five countries included in the Hays index, Singapore was the closest to achieve the 5.0, "which suggests firms are able to recruit, retain, or replace their key talent at generally prevailing wage rates."

Hong Kong scored a 3.9 and India 4.2, both lower on the index scale, suggesting more intense competition for key vacancies.

Meanwhile, Japan scored 5.3 and China 5.5, both higher on the index scale, translating to higher difficulty in finding the right skills to kill key vacancies.

The Hays Global Skills report explained that Singapore also witnesses wage inflation in high-skill occupations but has already implemented far-reaching immigration systems to respond to this pressure.

Singapore was also singled out as being in the best position to deal with skills shortages, which could be attributed to its very high level of education and labour market flexibility that has enabled employers to source candidates from overseas.

The Hays report warned though that wage pressure is very strong for both high-skill industries and occupations.

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