Look Ahead 2024: Amid job disruptions due to AI, remote work and tech retrenchments, youth urged to stay agile by upskilling
SINGAPORE — With global political tensions and economic uncertainty in 2023 carrying over into the new year, experts said that the job market in the year ahead is uncertain but young workers may look out for some bright spots.
The ongoing conflicts in Ukraine and Gaza, alongside tension between the United States and China, may keep companies erring on the side of caution when it comes to hiring and salary increments, although an expected stronger economy at home might give the job market a push.
Retrenchments in the technology field in 2023 — such as by Google, Meta, WeWork and Spotify — are unlikely to continue into the new year. However, some experts told TODAY that companies may choose to stabilise their headcounts or to not replace workers who have left arising from natural attrition.
Job demand in certain areas is also expected to rise, spurred by advancements in artificial intelligence (AI) and the growing expectations for companies to be sustainable.
As for workplace trends, the forecast is that more companies may look to hire remotely, alongside the continuing demand for flexible work arrangements.
THE INFLUENCE OF AI AND SUSTAINABILITY
AI and ChatGPT — a chatbot programme that uses generative AI to hold conversations with users— were hot topics for the past year, with many companies looking into integrating the technology into their workplaces.
With such advancements poised to continue, human resource (HR) experts told TODAY that demand for labour will be high in this sector.
However, industries and functions where AI has an impact, such as business outsourcing, will struggle in 2024 and beyond.
Mr Rahul Chawla, partner and head of talent solutions for Southeast Asia at consultancy firm Aon, said companies that cannot satisfy customer and stakeholder requirements on transitioning to green energy and renewables will also face challenges.
Other experts said that those in the renewable energy sector will see expansion as companies seek to meet these growing sustainability requirements.
Ms Shalynn Ler, general manager at HR firm Ethos BeathChapman, said that industries heavily affected by global uncertainties such as oil prices, supply chain disruptions and political tensions may also struggle.
These include those in the manufacturing and oil industry, where labour demand might be low and some companies may look at reducing their headcount.
As for the retail sector, there are mixed views on what lies ahead, with some experts sensing that inflation has left many shoppers tightening their wallets, while others are saying that a tourism boom would see the sector expand.
Mr Kenji Naito, group chief executive officer of HR firm Reeracoen, said that sunrise industries — including transport, logistics, healthcare, finance and consumer services — are anticipated to hire actively.
"Workers in declining sectors are encouraged to pivot to related fields, enhancing digital skills for smoother transitions," he said.
"Adaptability and continual upskilling remain crucial in navigating Singapore's dynamic labour market and it is crucial for youths to diversify their skill sets and consider industries with growth potential."
He added that beyond seeking mentorships, networking and upgrading skills, staying informed about global events will help young professionals make "informed career decisions".
RETRENCHMENTS
Ms Ler of Ethos BeathChapman said that following major retrenchments in the technology space in 2023, things look set to stabilise somewhat.
"For any cuts that may be needed, companies may look at natural attrition and not replace those headcounts rather than making major cost cuts (as) they did in 2023," she said.
Mr Adrian Choo, chief executive officer of consulting firm Career Agility International, said that when it comes to the industries that may face more struggles and uncertainties this year, retrenchments might be expected and commonplace.
"(Be) mentally prepared for this outcome, but remember there's no stigma to being retrenched, it's part of work life now," he said, adding that it is important to be agile and have several career plans and options.
Even if retrenchments should take place, Ms Ler said that young workers are safer than their older counterparts since companies tend to do retrenchments top-down, starting with senior employees at higher ranks.
"Moreover, younger employees may exhibit a faster re-employment rate than their senior counterparts, influenced by their salary expectations," she added.
However, Ms Ler gave the caveat that young workers should still be proactive in improving their skills to stay competitive in the job market.
As for the size of pay packets, Mr Joshua Yim said that companies will be more conservative given the uncertainty, similar to in 2023.
The founder of recruitment firm Achieve Group added: "In 2022, we saw salary increments go up as high as 20 per cent in some industries, but this is very unlikely (in 2024) as companies are likely to err on the side of caution."
He also said that bonuses would not be as "generous".
Aon's 2023 Salary Increase and Turnover Report said that salary increments in Singapore are expected to "stay flat", with a salary increase of about 4 per cent expected — the same as in 2023.
For young people who are job-hunting, Mr Chawla said that they need to be resilient and take a long-term view of their careers, warning them against being too focused on salary.
"Look for opportunities that offer a platform where they can hone their skills, build careers at firms that offer competitive pay," he advised. "Disproportionate focus on pay can result in missing out on the big opportunities in the long term."
REMOTE WORK AND FLEXI-WORK
With a slowly improving economy clouded by various uncertainties, companies seeking to lower their costs and ensure that they hire the right employees with the needed skills will drive a growing number of remote-work job opportunities in 2024.
A survey last year by global HR platform Remote found that 44 per cent of businesses globally are seeing a surge in full-time employees located overseas. More than 1,000 HR, business decision-makers and employees in Australia, India, New Zealand and Singapore were surveyed.
Remote's president and co-founder Marcelo Lebre said: "In the face of economic headwinds, access to global talent and opportunities will help to broaden the playing field."
However, even though there will be no shortage of opportunities for Singaporeans looking for careers remotely, Mr Lebre said that jobseekers will face stiff competition "as remote roles are in high demand and can receive thousands of applications per role".
HR experts also told TODAY that with more Gen-Zers entering the workforce and increasing focus on the employee experience, the trend for work-life balance and flexible work arrangements will continue in 2024.
These trends are why several soft skills will be "increasingly crucial" for youth, Mr Naito of Reeracoen said.
"For instance, essential skills such as negotiating common ground among multiple parties, adept facilitation, effective leadership, and the interpersonal communication and empathy skills that uniquely motivate individuals will be in high demand... in the future with the evolution of technology."
