Selected Issues Papers

Impact of AI on Singapore's Labor Market: Singapore

Author/Editor:

Shujaat A Khan

Publication Date:

August 13, 2024

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

Singapore is well-prepared for AI adoption but stands highly exposed to the increasing use of artificial intelligence (AI) technologies in the workplace, due to a large share of skilled workforce. While half of the highly exposed segment of the labor force stands to benefit from the appropriate use of AI to complement their tasks, potentially boosting their productivity, the other half may face greater vulnerability to AI’s disruptive effects due to lower levels of AI complementarity. Estimates suggest that women and younger workers are more exposed to the effects of AI, which, in the absence of appropriate policies, could worsen income inequality in Singapore. Targeted training policies, leveraging on the existing SkillsFuture program, can harness AI's potential. Additionally, focused upskilling can mitigate the disruptive impact of AI on vulnerable workers.

Series:

Selected Issues Paper No. 2024/040

Subject:

Financial sector policy and analysis Spillovers

Frequency:

Regular