As Budget 2024 introduces measures to support workers, the question remains: is upskilling truly the solution to economic uncertainties?
SINGAPORE: Amidst the announcements in the Budget 2024 speech by Deputy Prime Minister Lawrence Wong, which included various grants and vouchers, the focus on workers and upskilling stood out. With initiatives aimed at supporting students, mid-career professionals, young families, and the elderly, the Budget provides a range of handouts to help address the rising cost of living. However, despite these financial boosts, the central theme remains the challenge of workforce resilience, with upskilling presented as the solution.
Among the major initiatives, Institute of Technical Education (ITE) graduates will receive a S$5,000 top-up for their Post-Secondary Education Account when they pursue a polytechnic diploma, alongside a S$10,000 boost to their CPF Ordinary Account upon completion of the course. For those involuntarily unemployed, temporary financial aid will be introduced, marking a departure from Singapore’s previous reluctance to offer unemployment benefits. Moreover, those above 40 looking to switch careers will receive a generous $4,000 top-up to their SkillsFuture accounts to encourage career transitions.
While these measures are designed to equip workers with the necessary skills to adapt to an evolving job market, some are questioning whether this emphasis on upskilling will be enough to weather the storm of economic uncertainties. The underlying message in Budget 2024 is clear: mid-career switches are no longer the exception, but the norm. The notion of staying in one company for a lifetime is increasingly outdated, and career paths are becoming more fluid.
Deputy Prime Minister Wong’s message last year at the NUS IPS Singapore Perspectives Conference underscored the necessity of multiple careers over a lifetime. However, one concern remains: the opportunity cost of upskilling. Many workers fear that taking time off from earning to attend training will affect their livelihoods, especially when the return on investment for some training programs remains unclear.
For those aged 40 and above, the government has introduced training allowances, covering 50 percent of one’s average income for full-time training courses, up to S$3,000 per month. While these allowances are a step in the right direction, the real question is whether these programs will deliver the outcomes they promise. Data from SkillsFuture Singapore shows that 56 percent of mid-career trainees land new jobs within six months of completing their courses, but broader results remain inconclusive.
As more layoffs occur across various sectors, such as Shopee, Lazada, and Meta, Singaporeans are increasingly wary of whether upskilling can secure their job future. Even with government support, career transitions might still involve lower-paying roles, a concern for individuals with families and financial obligations.
The rising demand for SkillsFuture programs also raises concerns about the adequacy of course offerings. Experts, including Professor Dr. Laura Wu from Nanyang Technological University, stress the need for quality, in-demand training programs that are recognized by employers. However, the true return on investment remains to be seen.
While upskilling may offer valuable opportunities for some, it should not be seen as a foolproof solution. Factors like networking, luck, and broader economic trends play a significant role in career success. For many, upskilling may simply be one tool among many in navigating an increasingly unpredictable job market.
