your all-around blog for pinoys in singapore
What a slowdown in workforce growth means (TODAY Online)
Republic’s labour supply expected to increase at just 1% to 2% over next two decades
SINGAPORE — The Republic’s total workforce — comprising citizens, permanent residents and foreigners — is expected to grow at a slower pace over the next two decades. From an average of 3.3 per cent growth per year between 1970 and 2010, the size of the workforce will increase by an average of just between 1 and 2 per cent per year between 2010 and 2020.
“At current birth and immigration rates, there will soon be fewer Singaporeans joining the workforce and more retiring from it. The citizen workforce will age,” the White Paper released yesterday said.
Noting that Singapore cannot allow in “unlimited numbers of foreign workers”, it added that beyond 2020, workforce growth will slow down further to about 1 per cent per year “as the population ages and the Singaporean workforce starts to plateau”.
The impact? Economic expansion will slow to low single digits — and only if productivity continues to grow.