The Singaporean leader calls for urgent reforms in education and training to address the impending employment crisis.
Speaking at the Economic Forum in Davos on January 22, President Tharman Shanmugaratnam highlighted a looming global employment crisis, where 1.2 billion workers will enter the job market over the next decade, competing for just 400 million available jobs. This unprecedented situation could lead to widespread underemployment, unemployment, or workers entering the informal economy, he warned, which could potentially cause social instability.
President Tharman described this issue as not just a job crisis but a broader “crisis of social compact”—a loss of hope, self-belief, and dignity among workers, alongside a crisis of solidarity. He stressed that tackling this global job gap requires profound changes in education and training systems, starting from a young age. “What you do to develop human potential throughout life shapes not only how well people perform in jobs but also their ability to adapt to shifts in the job market,” he stated.
The President also raised concerns about the limitations of traditional academic education, particularly in universities, which he argued often fail to provide enough technical or vocational training. This lack of practical skills training may leave a generation feeling let down by the system, unable to secure meaningful employment.
Adding another layer of complexity, President Tharman pointed to the rapid rise of Artificial Intelligence (AI) technologies, which may displace workers across various sectors. He called for both public and private sectors to invest in reskilling workers to prevent them from becoming obsolete. Drawing from examples in countries such as Germany, South Africa, and South Korea, he emphasized the importance of retraining workers who are displaced by automation.
He also spoke on behalf of workers in the informal economy, especially in developing nations, advocating for stronger protections. In Singapore, for example, gig workers receive workplace injury compensation and social security contributions, which he believes should be adopted more widely.
“The core of economic and business strategies must focus on providing opportunities for workers to thrive, with governments and businesses working together to ensure long-term success,” President Tharman concluded.
