As automation advances, jobs for middle-skilled workers are disappearing. Insight looks at the issue of job polarisation and what might lie ahead for Singapore's labour force.
By Toh Yong Chuan And Tham Yuen-c, The Straits Times, 29 Mar 2014
By Toh Yong Chuan And Tham Yuen-c, The Straits Times, 29 Mar 2014
FOR five years, Mr Norizal Mohamed Hassan's take-home pay as a marine mechanic for a multinational company stagnated at just below $2,000 a month.
"I was frustrated because I was working hard and have a young child," says Mr Norizal, who has a vocational training certificate from the former Vocational and Industrial Training Board.
In January, the full-time employee decided he had had enough and quit - to become a taxi driver. Yes, to be self-employed, with no medical leave and no Central Provident Fund contributions. But the 37-year-old hopes that if he puts in the long hours, he will earn more monthly than in his old job.
The dad of one's switch from a middle-level skilled job to a service sector one that does not require technical training is part of a phenomenon dubbed job polarisation, say economists.
In it, middle-skilled jobs are disappearing while demand for high- and low-skilled workers grows. This has emerged only over the last few years in Singapore, but is a trend that has become established in many industrialised countries as automation replaces workers.
Deputy Prime Minister Tharman Shanmugaratnam warned about job polarisation when rounding up this year's Budget debate. Referring to the need to "transform" jobs and develop "obsolescence-proof skills", he declared: "We have to prepare for that new world."
Recent advances in technology are making some workers obsolete, yet boosting the efficiency of others. A gulf is forming in both demand for and the wages of those with the right fit and those whose skills have passed their use-by date.
Of course, ever since the Industrial Revolution, technology has displaced workers. But the same technology has often also created new jobs for which the workers can retrain.
This time around, experts are not sure if this wave of progress will be as creative as it will be disruptive.
With technology cycles getting shorter, it has become harder to predict where the future jobs will be. And it also means preparing for jobs that may not exist now.
Insight looks at what this new world might mean for workers, firms and the Government.