You are here
More upward pressure on Singapore wages in 2015: Hays
THERE is more upward pressure on Singapore wages in 2015 due to skills shortages for highly-skilled candidates and government policy to encourage the hiring of locals for middle-income jobs, said recruiter Hays.
"Singapore's standing as a regional hub for multinational corporations and the sheer number of construction and infrastructure projects bolsters a highly active recruitment market," said Lynne Roeder, managing director of Hays in Singapore.
"But Singapore faces a significant talent gap thanks to growing technical skill shortages. Government initiatives that endorse local Singaporean hires for middle-income jobs have further exacerbated the shortage of talented locals, as the huge increase in overall wage pressure shows.
"Our advice to employers, therefore, is to use a range of innovative attraction strategies, not just salary increases, to keep recruitment plans intact."
The Hays Global Skills Index, produced in collaboration with Oxford Economics, scored Singapore's labour market against seven indicators.
Overall, Singapore scored 4.7 in 2015 on a scale of 1 to 10, up from 4.1 in 2014 and 4.6 in 2013. This indicates higher upward pressure on wages.
The higher rating was due especially to wage pressure in high-skill industries. Other contributing factors include a strong labour force participation rate and talent mismatches.
Mitigating factors were how the education and labour markets were flexible.