Workers financially unprepared for layoffs amidst rising automation

About 34% of employees are unable to cover expenses should they get fired.

Singapore’s workforce seems to be unprepared financially should they be replaced or laid off due to increased automation in the workplace, with 34% of workers unable to cover three months of expenses with their savings if they lost their main source of income, according to a report by PayPal.

Meanwhile, only 23% of those in jobs with low risk of automation expressed difficulty covering expenses.

The report showed that workers in jobs that are at high risk of automation show more signs of financial distress, with 54% failing to pay bills on time and incurring additional fees or interest in the last year, whilst only 34% of those in jobs at low risk of automation had done so.

Furthermore, 51% of workers at high risk of automation said they believe that their incomes will be more predictable in the next five years, suggesting that they might be unaware of the financial impact of changes in the workplace.

The report noted that financial services providers must enhance offerings to respond to the needs of a changing workforce.