PUBLISHED ONMay 06, 2026 10:05 AMBYKhoo Yi-HangThe Government should have greater focus on policies to help new hires instead of those that reduce job displacement or push for retraining due to artificial intelligence (AI), Workers' Party MP Associate Professor Jamus Lim argued in Parliament on Wednesday (May 6).
"If our objective is to protect our workforce from job losses that could result from an economy-wide embrace of AI, then our efforts today should mainly be directed toward policies that promote new hiring, rather than those that focus either on reducing displacement or pushing for retraining," the Sengkang GRC MP said.
He was speaking on the debate on the parliamentary motion of no "jobless growth" by labour chief Ng Chee Meng on Tuesday, where the latter highlighted that Singapore's AI-driven economic growth does not equate to more or better jobs for workers.
Prof Lim explained that job displacement due to AI has been "modest and localised" in Singapore, whereas the hiring slow-down of new workers is "already evident" and also "likely to accelerate".
"In principle, the consequences of AI could bite on two ends of the labour market," he said.
"It could reduce the incentives for firms to hire, thereby lowering the number of total new job openings.
"Or it could raise the frequency of hiring by companies or induce workers to quit."
@asiaone On Wednesday (May 5), associate professor Jamus Lim spoke in Parliament about how AI could reshape the labour market, warning that it may “bite on two ends” and reduce hiring, decreasing job opportunities, or increase hiring frequency and inducing workers to quit. #sgnews #Singapore #Parliament #ArtificialIntelligence #Workers ♬ original sound - AsiaOne
He elaborated that AI tools allow companies to replace humans with potentially cheaper and more effective technologies, which particularly affects entry level workers that take on simpler tasks.
This, however, is a "chicken-and-egg problem", he stated.
Without new workers given the opportunity to work, they cannot gain job-specific experience required to be mid-career professionals.
For those already hired, they may find themselves out of a job too, the MP said.
"If there is nowhere else in the firm for this person to be reassigned to, or if the individual turns out to be too costly, then they are let go."
Prof LIm added: "The message from studies worldwide is clear, while there has been little evidence of displacement thus far, there are more ample signs that there has been a decline in hiring."
Citing the Ministry of Manpower's labour market report for Q1 2026, he said that overall retrenchments have remained stable since 2023 and unemployment rates have hovered at two per cent since 2022.
Referring to a statement made by Senior Parliamentary Secretary for Manpower Shawn Huang on April 8 in Parliament, Prof Lim said that there are 10 times more job vacancies in AI-exposed sectors like finance or information and communications technology.
"This could be interpreted as a healthy, robust labour market for new hires, but I will caution against it," he said.
"This is because, as any job seeker will tell you, an opening does not a job make."
He further claimed that the Ministry of Education's latest graduate survey shows that the percentage of graduates who managed to find employment has declined across almost all fields of study, with about one in four graduates unable to secure full time employment.
"AI will destroy perhaps as many jobs as it creates," Prof Lim said.
"But as we confront the bleeding edge of this transition, we must set the stage for those who are most affected by the rollout, which for now at least, are clearly our young entry level workers.
"We need targeted policies that will help sidestep the great hesitation in hiring them. This is how we best ensure that the growth promises of AI are not overshadowed by fears of millions of missing jobs."
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khooyihang@asiaone.com
