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APAC Edition
18th September 2024
 
THE HOT STORY
Foreign firms fuel Singapore's job market
In Singapore, approximately 20% of firms are foreign-owned, yet they employ 60% of residents in high-earning positions, according to the Ministry of Manpower (MOM). This data highlights the significance of attracting foreign investments to complement local workforce growth. Mr Ang Boon Heng, director of MOM's manpower research and statistics department, noted: “What it actually suggests is that more and more individuals are taking more time to seek out, to train for better jobs.” Despite a slight decline in the re-entry rate for retrenched residents, the overall unemployment rate has improved, with a seasonally-adjusted rate of 2% in June 2024. MOM anticipates continued growth in wages and employment, particularly in sectors like financial services and technology, while acknowledging challenges posed by an ageing population and a shrinking local workforce.
WORKFORCE
China's retirement age rises by five years
Last week, China announced a plan to gradually increase retirement ages by up to five years by 2040, starting in January. The decision comes amid economic challenges, particularly in the Northeastern provinces of Liaoning, Jilin, and Heilongjiang, which face significant pension fund shortfalls. Ai Jingyi, a postdoctoral researcher at Fudan University, stated: “The postponement was carefully designed and timed to ease the funding pressure facing governments.” The changes aim to alleviate the national pension budget shortfall, which could decrease by 20% over the next decade. However, experts warn that simply delaying retirement is insufficient to address the funding gap, emphasising the need for comprehensive reforms. Concerns have also been raised about the impact on job openings in state-owned enterprises, as longer employment may reduce job mobility for younger workers.
Labour hoarding: A ticking time bomb?
Australia's unemployment rate is projected to rise to 4.5% due to economic pressures and the phenomenon of 'labour hoarding'. Deutsche Bank's chief economist, Phil Odonoghoe, commented: "Australia's unemployment rate is lower than it should be because most of the adjustment to lower labour demand has occurred through hours worked, rather than through employment." While the Reserve Bank of Australia (RBA) does not believe labour hoarding is widespread, it acknowledges that if it is, the unemployment rate could exceed current forecasts. Economists, including Dr Leonora Risse from the University of Canberra, suggest that labour hoarding may be more common than reported, posing risks to the economy and households. The Australian Bureau of Statistics is set to release the unemployment rate for August, which will provide further insights into this developing situation.
Australian Government to reset relations with unions amid bikie infiltration concerns
The Australian government is set to reset its relations with unions and businesses following revelations of bikie infiltration within the CFMEU. Minister Murray Watt announced the reconvening of the National Construction Industry Forum, scheduled for mid-October, to address issues of workplace culture, misconduct, and lawlessness. "We need to fundamentally change the culture of this industry," said Senator Watt, highlighting the need for cooperation among government, employers, and workers. Meanwhile, CFMEU administrator Mark Irving has called for ongoing investigations into the influence of outlaw motorcycle gangs, following an interim report by barrister Geoffrey Watson, which revealed that the union's negotiations had become "vulnerable to corruption." An integrity unit will be established to investigate allegations and relationships with former officials.
Gen Z demands redefine workplace culture
According to the Unstop report titled Gen Z in the Workplace, job satisfaction and work-life balance are paramount for Gen Z employees in India, overshadowing the importance of a high salary. The study surveyed over 5,350 Gen Z individuals and 500 HR professionals, revealing that 72% of respondents value job satisfaction more than financial compensation. Additionally, 47% consider work-life balance essential when evaluating potential employers. Ankit Aggarwal, founder and chief executive of Unstop, stated: “For the youngest generation in the workforce, work isn't just a place you go to every day to get your account credited regularly.” This shift in priorities is prompting employers to rethink traditional compensation models and adapt to the evolving expectations of the workforce, particularly in countries like India, where long working hours are often glorified.
Court halts outsourcing of hospital staff
The Madhya Pradesh High Court has temporarily halted an order from the civil surgeon of Victoria Hospital in Jabalpur that aimed to change the employment status of daily-wage employees to outsourced workers. The petition, filed by 14 daily-wage employees, argued that the August 22, 2024 order would adversely affect their service conditions and benefits. They expressed concerns that the new arrangement would place them under the control of an outside agency, which could terminate their services at will. Justice Sanjay Dwivedi stayed the order until the next hearing on October 21, with Advocate Sonali Paroche representing the employees.
WORKPLACE
Hyundai Motor India named top employer
Hyundai Motor India Limited (HMIL) has been awarded the title of Top Employer 2024 in India by the Top Employers Institute, a global authority on workplace excellence. HMIL managing director Unsoo Kim stated: "This accolade is a testament to our ongoing commitment to creating an inclusive, dynamic, engaging, and rewarding workplace." The certification is based on the HR Best Practices Survey, which assesses various domains such as People Strategy, Work Environment, and Diversity, Equity & Inclusion. Billy Elliott, regional director for Asia Pacific at the Top Employers Institute, congratulated HMIL for being the first Hyundai market to achieve this certification, highlighting its role in enhancing employee experiences.
LEGAL
Scrutiny needed for industry assistance
Danielle Wood, chair of the Productivity Commission, has expressed her support for the Australian government's concessions regarding the Future Made in Australia legislation, which aims to enhance scrutiny of industry assistance proposals. Wood highlighted that while migration and tax treatments impact the housing market, the primary issue lies in supply-side structural problems. She stated: "Supply first and foremost, I think, is the big constraint that we've seen, and the big challenge for affordability." Wood also emphasised the need for rigorous scrutiny of defence spending, advocating for transparency to ensure taxpayers receive value for money. The Future Made in Australia plan, which seeks to support local industries and aid the transition to a net zero economy, faces challenges in the Senate, with concerns raised by both the Greens and the Coalition. Wood concluded that addressing the housing crisis will require comprehensive reforms and cannot be resolved quickly.
HEALTH & SAFETY
Hanwha Ocean invests in safety overhaul
Hanwha Ocean has allocated 1.98tn won (£1.5bn) in safety measures for the next three years, with a significant increase in annual budgets. The company plans to reserve 350bn won for 2024, up by 28.8bn won from last year, and aims to enhance its safety management system by investing 846bn won in various initiatives. This includes 700bn won for replacing outdated equipment and 65bn won for an artificial intelligence monitoring system to detect hazards. Chief executive Kim Hee-cheul stated: “After carefully reviewing internal and external criticism... it was determined that an overall haul of the existing safety management system was needed.” The initiative follows a concerning rise in workplace fatalities, with 17 workers reported dead in shipyards this year.
TECHNOLOGY
Revolutionising recruitment with AI
RippleHire, an intelligent talent acquisition cloud, has been transforming recruitment since 2012, serving over 1m users across 50+ countries. In an exclusive interview, Sudarsan Ravi, founder and chief executive, highlighted the significant advancements in artificial intelligence (AI) technology, stating: "AI is no longer just hype in talent acquisition. It's a powerful tool that can streamline processes." RippleHire addresses unique challenges in emerging markets, such as candidate fraud and impersonation, by employing AI for résumé verification and facial recognition. Ravi emphasised the need for organisations to adapt their technology infrastructure to combat evolving fraud tactics, urging recruiters to establish robust talent acquisition systems. Ethical considerations are also paramount, with RippleHire focusing on fairness and diversity in AI screening processes.
INTERNATIONAL
UK fails to attract skilled foreign workers
Britain is struggling to attract skilled workers from overseas, according to data covering the first six months of the year from job search website Indeed. Of all the clicks on UK job postings from workers abroad, only a fifth were on high-wage jobs, or postings offering the upper third of wages, Indeed said, observing that France and the Netherlands were among preferred destinations. “While there’s been a surge in foreign interest in UK roles, the country falls behind other Western nations in attracting highly skilled workers, which is at odds with the government’s current immigration policy,” said Pawel Adrjan, economic research director for EMEA and APAC at Indeed, adding: “As borders become less relevant for workers, businesses and states must offer not only competitive salaries but also attractive living conditions, high-performing health care and education systems, and political and economic stability . . . Immigration policies must align with these efforts.”
 


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