Dear readers,
Singapore’s economy is powering ahead. But will the jobs keep pace?
Following a “better-than-expected performance” in the first six months of 2026, the Ministry of Trade and Industry (MTI) in August upgraded its economic growth forecast for Singapore this year to 4.5 per cent to 5.5 per cent, up from its earlier forecast of 2 per cent to 4 per cent.
And yet, retrenchments in the second quarter of the year, driven by business reorganisation and restructuring in some sectors, rose to 4,620, its highest level since the fourth quarter of 2020.
Resident employment growth, meanwhile, slowed to 2,200 from 5,400 in the previous quarter.
No doubt, artificial intelligence is transforming the way companies grow. AI can help businesses produce more, expand faster and generate greater economic value — without necessarily hiring many more people to do it.
That has raised concerns about “jobless growth”: an economy that prospers even as employment opportunities fail to grow alongside it.
It's a concern across the world - the Bank of England and the International Monetary Fund are among those that have also warned about this trend.
Singapore isn’t in dire straits. But as our latest Big Read explores, it's worth asking what will happen if growth increasingly flows to capital-intensive industries and a smaller pool of highly skilled workers, while entry-level and middle-tier opportunities become harder to come by.
What can Singapore do now to ensure workers aren’t left behind by an AI-powered future?
Yours faithfully,
Yasmine Yahya
Deputy Chief Editor, CNA Digital (TODAY, Lifestyle & Luxury)
