In the current business scenario, more and more job opportunities are being created along with increase in the rate of unemployment. Though the increase of unemployment and job opportunities at the same time is quite contradictory, but the current trend is showing the same. There are various reasons behind this phenomenon such as aging population, rapid change in the technology, lack of training and development programs for the employees and difference in the knowledge domain of the would be employees and the corporate requirements (Ayres, 2013). Moreover, in the present era of globalization, inflow of the foreign and updated technologies is more, which further makes the existing graduates to cope up with the change in the technology.
This essay will discuss about the recent trend in the graduate labor market in the global scenario along with identifying the opportunities and threat. Moreover, the impact of the factors such as inflow of the foreign technologies and aging population on the operation of the contemporary business organizations will also be discussed in this essay.
Trend in graduate labor market of Singapore
In the recent times, the growth rate of graduate employment in Singapore is going down drastically. According to the various reports, graduate unemployment is the all time highest in Singapore in 2016 (LOH, 2017). It is being reported that Singapore is having increasing rate of unemployment among the degree holders is rapidly increasing and it showed the highest rate in 2016 with having the most layoffs. The current rate of unemployment is 2.1 percent, which is the all time highest for Singapore in the last few years (Morrison, 2014).
Source: (Seow, 2017)
From the above figures, it is being seen that, the employment growth is rapidly reducing from the last 17 years. Moreover, local employment growth is much lower compared to the foreign employment growth. Thus, the recent trend of graduate labor market is not favorable due to various reasons. The followings sections will discuss about the reasons of the increase in the rate of the unemployment among the graduates.
From the recent trend of the graduate labor market, the maximum opportunities will be gained by the business organizations. This is due to the fact that, the rate of increase in the graduate employees is more compared to a decade ago. Thus, business organizations are having more options during their recruitment process (Green & Henseke, 2014). The available talent pool is more for them. In addition, in the current scenario, graduates employees are not from single field or sector rather they are from diversified sectors. Thus, it is also beneficial for the business organizations to have more options to meet the diversified organizational requirements.
Employees are also having opportunities by having more career options compared to the non-graduates. Though, in the above discussion, it is been seen that, employment opportunities are reducing, however, the existing career opportunities will have more preferences for the graduates. This is due to the reason that, the graduates will have more domain knowledge, experiences and trained to meet the organizational requirement (Verhagen et al., 2012). Moreover, it is also helpful for the organizations to have the well trained and knowledgeable employees in board.
Apart from the identified opportunities, there are various threats that can get emerged from the recent trend in graduate labor market. One of the key threats for the business organizations is the increase in the rate of employee turnover. This is due to the reason that, the more educated and skilled will be the employees, the more they will be prone to change their existing organization for better opportunities. Thus, this will in turn increase the cost for the organizations. The cost will get increase due to the reason that, the more will be the employee turnover in the organization, the more will be the cost of training and development for the new employees (Hancock et al., 2013). Moreover, due to the high rate of turnover, employees will have less motivation to enhance their organizational citizenship. Thus, due to the emergence of huge number of graduate employees, organizations will have multiple challenges to face.
Another key threat that they will face is the lack of the suitable employees and loss of opportunity cost. This is due to the reason that, in the current scenario, huge amount of graduate employees are there for jobs. However, according to various reports, there are only few those who actually suitable for the business corporate. Thus, it is challenge for the business organizations to choose the right and eligible candidate from the huge talent pool.
Employees will also face from the threat from the current scenario of graduate labor market. This is due to the reason that, the more employees will be graduated, the less will be chance of being employed in the organizations. Job opportunities are not increasing at similar rate of increase in the graduate employees. Thus, there will a huge gap between the supply and demand of employees. With the existing job availability, a good number of graduate employees will fail to have job (Tewell, 2012). Moreover, another threat that they will face is the higher risk of attrition. This is due to the reason that, if the business organizations are having more number of options to replace any existing employees, they will less likely to rectify the particular employee in case of any mishaps. Rather they will terminate and replace with another employee. Thus, the employees will face the threat of termination at any point of time.
Influx of foreign talent
Inflow of the foreign talent will have both merits as well as demerits for the organizations. This is due to the reasons that, in the current scenario, inflow of the foreign employees pose both challenges and opportunities for the contemporary business organizations. One of the key demerits is the creation of diversity issues among the employees in the organization. This will emerge due to the reason that, more inflow in the foreign employees in the organization will create the issue with the local employees (Gomes, 2014). Local employees will have the impression that their effectiveness is not being valued by the organization and thus foreign employees are being recruited. Thus the level of motivation and job satisfaction for the local employees will get reduced. Moreover origination of the issues related to diversity in the organization will in turn reduce the organizational productivity and effectiveness.
Another demerit of the inflow of the foreign talents will be the lower job opportunities for local talents. As discussed earlier, Singapore is already having the shortage of job opportunities for their local population. Thus, with the inflow in the foreign employees, this issue will get enlarged. Eventually, the issue of unemployment will get increased. In addition, language barrier will get emerged due to the difference in the language of the local and the foreign employees (Giulietti et al., 2013). Thus, the effectiveness of the business communication will get hampered.
Apart from the demerits of the inflow of the foreign employees, there are various merits for the organizations. One of the key merits will be increase in the talent pool for the business organizations. With having the access to the foreign employees, business organizations will have the more options of potential candidates to choose from. Moreover, the cost involved in hiring the human resources will also get low with the initiation of the inflow of the foreign employees. This is due to the reason that, selection of the employees from the developing countries will involve less cost due to the low labor cost in those countries. Thus, the cost for the business organizations will get lowered.
Impact of inflow of technologies
In the present era of globalization, majority of the business organizations are having access to the latest technologies. Moreover, with emergence of the multinational organizations, developing and underdeveloped countries are also having the access of the updated technologies from the developed countries (Brincikoya & Darmo, 2014). However, this will have negative implication on the graduate labor market. This is due to the reason that, with the rapid inflow of the latest technologies, it becomes difficult for the employees to cope up with the change and majority of them becomes unproductive with the change. Thus, they lose their competitiveness in the job market along with losing their job. In addition, up gradation of the technologies also lead to the automation of the operational facilities that further reduces the need of the manual labor. Thus, the issue of unemployment will get enhanced.
Impact of aging population
Aging population will have negative implication on the organization and employee flow. This is due to the reason that, the more aged will be the population, the less will be the availability of the candidates in the working age group (Anderson & Hussey, 2017). Thus, the organization will face the challenge of selecting the employees from the right age group.
Thus, from the above discussion, it can be concluded that, issues related to the graduate employees are rapidly increasing in Singapore. This is due to the reason of increase in the graduate employees and creation of less job opportunities. However, one recommended measure that may be beneficial in overcome this issue is providing the potential candidates practical training rather than just providing the theoretical knowledge. This will help the employees to get adjusted with the practical situation effectively.
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