Tight labour market benefits workers in move to skills-based hiring: Josephine Teo

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DAVOS - A tight labour market may be a good thing, as this motivates companies to look at marginal candidates more closely and find ways to upskill them rather than overlook such prospects out of hand, Minister for Communications and Information Josephine Teo said on Monday .

However, a tight labour market prompts employers to look at candidates more closely and make the effort to top up their skills - out of necessity as they seek to meet their manpower needs, added Mrs Teo, who previously held the manpower portfolio. He noted that 50 major firms in the United States, such as IBM, Nike and Walmart, have committed to hiring over the next decade a million black Americans who do not hold a degree, and that reassessing job requirements is a crucial piece of the puzzle.

At the discussion, panellists said there is growing recognition from both employers and workers on the need to shift to a skills-based approach of looking at competencies and job fit, not least because jobs are changing faster than ever. "The difference between a bartender and a customer service representative is only about 30 per cent of your skills," he said."So basically, you need to add a little bit and then you can do that, because a lot of the soft skills you have are already in place."

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