Power of flexi-work options in a tight labour market

In a commentary, SMU Centre for Research on the Economics of Ageing (CREA) Associate Director (Programmes) Jiaming Ju wrote that the Government's plans to tighten the foreign worker quota in the service sector provides an opportunity for employers to relook their hiring practices and to tap underutilised sectors in the local workforce, in particular, women and senior workers. Research from CREA, where a nationally representative sample of over 10,000 Singaporeans between the ages of 50 and 70 are interviewed on a monthly basis, found that for the 67 to 70 age group, 25 per cent think they will work after age 70. For the 67 to 70 age group, 21 per cent are already working full time or are self-employed, with another 14 per cent working part time. Many mature workers work for retirement adequacy reasons or simply to stay active. But it seems that with better flexible options, many more would work and contribute to the economy. Mandatory flexible work arrangements (FWA) can raise their employment rates and productivity, and potentially ameliorate the dependence on foreign labour in the long run. “Compared with direct subsidies, it is both cheaper and more impactful to enforce FWA to help the ones in need to stay in the workforce and generate income. After all, committed workers are the best inspiration and role models for the next generation,” wrote Ms Ju.