Skills mismatch a hurdle to productivity

IF employers needed any proof that the manpower shortage in Singapore is becoming more acute, last Friday's labour market report provided some.

Job vacancies rose to an eight-year high in the first quarter, continuing to outnumber job seekers. The 60,500 vacancies in March also made up 3 per cent of total labour demand, up from 2.6 per cent a year ago.

There is some consolation in the fact that there are now more job seekers chasing jobs. The unemployment rate rose to 2 per cent in March, and stood at a higher 2.9 per cent for residents. In the Ministry of Manpower's (MOM) view, this reflects how more residents (particularly less educated ones) have been encouraged by the greater availability of jobs and higher wages to get back into the labour market.