How governments can help workforces emerge stronger from COVID-19

Digitalization will invariably expose the workforce to new risks. While leaders have been preparing for job displacement by digitalization, the pandemic has accelerated this disruption. A study by Cisco and Oxford Economics Data estimated that 6.6 million jobs across the six largest Southeast Asian economies will become redundant through more widespread adoption of technology by 2028.1 Accommodation and food services are two of the hardest hit industries, and will continue to face challenges as economies reopen.

In the beginning phases of the pandemic, the economic crisis demanded the urgent protection of existing jobs and industry capacity. However, as the pandemic extends into a new normal, it is time to shift the focus toward new job creation for the longer term. While it is difficult to protect all industries, governments should aim to protect all workers. This would mean placing less emphasis on some traditional jobs and systems to enable new growth in emerging industries. By connecting individuals with the right opportunities and facilitating redeployment at scale, governments can play a key role in allowing market forces to guide labor movement from industries in decline to those that are thriving.  

Mapping transferable skills to different industries shows the potential for individuals to reskill and pivot to where opportunities lie, as shown in the following diagram.

Displaced workers need to be matched with new, complementary jobs in a way that is both swift and smart. This minimizes the depreciation of skills and morale loss from prolonged displacement, while building on individuals’ existing capabilities and experiences. By providing accessibility to jobs and guidance for redistribution of labor along with upskilling, governments can encourage a more adaptive workforce.

For example, the Adapt and Grow program in Singapore provides redeployment programs for affected sectors, such as tourism, aviation, retail and food services. Such initiatives are shifting the focus from subsidizing existing jobs to incentivizing new job creation. The SGUnited Jobs and Skills Package further encourages creative hiring through non-permanent and traineeship roles for experienced workers, enabling mid-career switches by connecting employers and job seekers through new traineeship opportunities.

Against the backdrop of Southeast Asia’s progress toward becoming a manufacturing hub, mobilizing labor could further serve as an opportunity to strategically focus workforce capabilities in emerging areas.

The paradox of high unemployment2 across Southeast Asia at a time of skilled labor shortage3 highlights the growing mismatch between the supply and demand for emerging skills — and this skill gap is widening with changing business needs. At present, labor redistribution alone cannot bridge this gap due to the uncertainty over workforce readiness.

To address this issue, governments need to conduct detailed workforce planning for each industry to identify key manpower skills and capabilities in demand. Major skill gaps can then be addressed through career coaching and upskilling to support both newly created jobs as well as the transformation of existing ones. Working with the ecosystem of industry players, labor unions and training providers, governments should leverage public-private partnerships to develop quality training opportunities, using technology and community outreach programs to make learning accessible and timely. The data-driven modeling of manpower needs, followed by joint public-private reskilling efforts to bridge skill gaps, can nurture a post-pandemic workforce that is future-ready and adaptable for long-term employment.

For example, digitalization of health care, food services and commerce will drive a shift in the requisite skill sets, and governments are stepping in to supplement existing workforce skills with those required for the future.

A survey by Kelly Services in Malaysia reported that skills in information technology, as well as digital sales and marketing, will be most in demand as the country emerges from the COVID-19 pandemic.4 The Malaysia Digital Economy Corporation has embarked on initiatives to upskill Malaysians, especially MSMEs and vulnerable groups in society, in e-commerce, cyber risk management and other sought-after skills. Similarly, the Electronic Transactions Development Agency in Thailand launched Young Talent Platform to foster digital readiness among young workers in the e-commerce era.

By applying lessons learned from their adaptations during the pandemic, governments can serve as role models for the business community and continue to adapt their responses to changing workforce needs. Vietnam’s Government, for example, has prioritized digitalization of its internal processes and systems to support digitalization of the nation’s economy. Initiatives, such as digital documentation approval, integrated platforms and digitalized public service delivery, have been implemented to help the Government improve connectedness and operational efficiency.

While views vary on the best way for governments to respond during the pandemic, governments should refine manpower regulations by identifying and formalizing practices that worked to continue driving efficiencies in the post-pandemic world. For example, the Indonesian and Philippine Governments have introduced new employee wellness policies and guidelines on flexible work arrangements. This highlights the possibility of driving efficiency, while maintaining the safety of workers, which can continue in the new normal.

The pandemic has impacted the world gravely and disproportionately. Governments play a crucial role in helping the workforce to keep pace with new opportunities or unlock them in the dynamic business environment. Clearly, the strengthening of Southeast Asia’s workforces will be heavily influenced by the future-readiness of their governments, and the use of data and technology will be vital to making informed decisions, improving transparency and building trust.

Summary

The COVID-19 pandemic has accelerated transformation across industries. As employment opportunities vary and shift across sectors, it is important to leverage public-private relationships and opportunities to enable labor redistribution, upskilling and job creation so that the workforce can evolve and emerge stronger from the crisis.

Governments’ future-readiness will also greatly influence the strengthening of Southeast Asia’s workforces. Key actions include utilizing data and technology to enable informed decision-making, improving transparency and building trust.