Singapore HR professionals should brace for a tight labour market, according to a report just released by the Monetary Authority of Singapore (MAS).
In the agency’s half-yearly macroeconomic review released today, MAS attributed the projected tight labour market to "firm manpower demand, especially in the domestic-oriented services sectors, [and] runs up against increasingly binding labour supply constraints.”
Wages have also increased in line with economic growth – the wage bill made up 86% of GDP growth last year. The bulk of these gains were accrued to resident workers in view of a rise in local employment.
MAS anticipated wage growth would also pick up this year amid the tight labour market, but it is unlikely to exceed the historical average of 3.7%.
Wages could increase more rapidly the following year, particularly if economic conditions improve and the unemployment rate decreases even more, the report said.
Overall, Singapore’s macroeconomic growth is tipped to be positive. However, "the extent to which Singapore will benefit from the cyclical uplift will depend on developments in specific markets and industries", the report noted.
More in tomorrow’s edition of HRD Singapore.