Labour Shortage Singapore & its Link to Rising Prices of Commodities
The world will soon enter a post-pandemic era. While there are new variants of the COVID-19 virus that are still a threat to the world, the aggressive vaccination drives and safety protocols in place around the world have ensured that the world can go back to what it was in 2019 soon enough.
Anticipating this post-pandemic era, there has been a sudden surge in demand for goods and services, causing a threat of inflation in 2021. Basic commodities such as wood, oil and agricultural products are in high demand. There are a lot of industries related to these three primary industries that have also noticed a surge, which include the shipping industry, transportation, and supply chain management. Organizations are opening up job postings and offering employment like never before to meet the needs.
What companies observed was the reverse. There was a labour shortage in Singapore and all around the world. As jobs opened up in these industries, there was no supply of labour to fill the positions.
What does this mean for Singapore’s economy? Are there chances of inflation in Singapore in 2021?
The relationship between the labour shortage in Singapore and the rising prices of commodities
The labour shortage in Singapore could be attributed to multiple reasons. Since COVID-19 struck, many people were laid off. This meant that residents of Singapore had to find alternative means of income, take up jobs in different industries and change their skill set in order to earn a livelihood. A lot of people who came to Singapore for work and lost their jobs had to return to their home cities and countries.
Typically when there is a shortage of labour, companies rely on migrant workers to come in and take the available jobs. This time around it is different. The uncertainty caused due to COVID-19 has resulted in people being extra cautious and reluctant to shift for a new job, especially at the chance of risking exposure.
Labour shortage in Singapore, due to these reasons, has been at an all time high, and this scenario has been observed in countries around the world. The lack of labour has caused disruptions in supply chain management in many industries, causing disruptions in the entire economy. It has created bottlenecks for companies because they do not have the labour they need to manufacture, produce, or transport the products they make or sell to meet the demand.
There is no shortage of raw material. Consumption of resources was at an all-time low as people saved up on their income and stayed at home. The primary reason behind the rise in commodities is not the lack of available resources, it is the lack of labour.
What is in the future for Singapore?
While the labour shortage in Singapore remains, the demand for goods and services will continue to rise, and since there is a disconnect between the demand and supply chain, prices of commodities will continue to rise as well. There are chances of inflation in 2021, not just in Singapore, but all across the world. As communities continue to spend and fund money into the economy, organizations need to find new ways in which they can meet this hike with adequate supply to avoid Singapore inflation for 2021.
Labour shortage Singapore
Inflation in 2021
Singapore inflation 2021