New structural gaps in workforce despite continuing economic growth: Ng Chee Meng

By the Editorial Team · Friday, October 23, 2026

Singapore is experiencing rising retrenchments amid rapid economic growth, driven in part by AI-related disruptions, with fresh graduates facing delayed employment. To address this, the National Trades Union Congress and KPMG launched the Jumpstart Your Workforce Transformation programme, offering grants and AI-focused training courses to help companies and workers adapt to workforce changes.

Singapore is witnessing the emergence of new structural gaps in its workforce despite sustained economic growth, according to Ng Chee Meng, Minister in the Prime Minister’s Office and labour chief. Speaking on October 22 at an event in Marina Bay, Ng said that while the country’s economy has expanded by about 5% annually over the past three years, retrenchment rates have climbed to levels comparable with those seen during the COVID-19 pandemic. In the second quarter of 2026, 4,620 workers were laid off.

Ng pointed to several factors contributing to the rise in retrenchments, highlighting technological disruptions such as artificial intelligence (AI) as a potential driver. He also expressed concern over the delayed employment of fresh graduates, signaling broader workforce challenges amid evolving economic conditions.

In response, Ng called for closer cooperation between companies, workers, and the labour movement to navigate the integration of AI into business operations. At the event, he announced a new collaboration between the National Trades Union Congress (NTUC) and professional services firm KPMG aimed at assisting companies with workforce transformation and AI adoption. This initiative, named Jumpstart Your Workforce Transformation, enables companies to access two grants—the NTUC Company Training Committee (CTC) grant and the Enterprise Workforce Transformation Package—to fund various stages of transformation efforts. While each grant has its own eligibility requirements, there is no cap on the number of companies that may participate.

As part of the partnership, NTUC LearningHub and KPMG will develop six courses focused on AI applications across sectors including sustainability and finance. This collaboration adds KPMG to NTUC’s roster of “lead multipliers” — industry leaders partnering with the labour movement to accelerate AI adoption. Other lead multipliers include PwC, Amazon Web Services, and Huawei.

Ng noted that NTUC’s use of CTCs has helped companies align management and union representatives to identify necessary skills and plan employee training alongside business transformations. Scaling these approaches will be key as Singapore aims to avoid “jobless growth” resulting from AI-driven changes.

In a fireside chat following his remarks, Ng emphasized the labour movement’s recognition of inevitable disruptions from AI adoption. He acknowledged that some sectors and workers will face displacement due to structural workforce changes. To address this, NTUC aims to prepare workers to remain relevant in an AI-powered economy, support those needing to reskill or pivot to new jobs, and protect vulnerable workers to enable recovery.

Ng also underscored the need for Singapore’s education system to adapt by fostering agility of mind and resilience from early schooling through higher education to better equip future workers for rapid technological shifts.

KPMG managing partner Lee Sze Yeng, speaking to the media, outlined the firm’s role in helping companies analyze job roles, determine suitable AI applications, and identify skill gaps. She emphasized the importance of establishing clear roadmaps for both companies and employees to navigate workforce transformation effectively.

Applications for the Jumpstart Your Workforce Transformation programme opened on October 22.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.