Global markets are exposed to a potential surge in oil and natural gas prices, as the Iran-Israel-US war enters its weeklong campaign in the Middle East. For Singapore, a trade-dependent, oil-importing country, the impact could be significant for all and especially for new job entrants and younger generations.
“Everything is going to get more expensive,” with one user commenting, while another remarked, “And this time it’s hard to pivot to cheaper options since everybody is affected. The whole world will be affected by higher oil prices.” Others chimed in with concerns over rising costs, simply noting, “Inflation incoming.” At the centre of it is jobs, can we survive another downturn?
While there is full employment in Singapore currently, employability concerns continue to be a hotly discussed topic in Singapore, with some going online to air their employment woes and the stresses in their everyday lives.
“7 months and still unemployed,” or “My relative under 30 has been almost 2 years unemployed.” But perhaps the most telling comment was, “I wonder if there is a serious job crisis in Singapore, or if I am the problem?” Although this was posted four months ago, the thread and discussion have continued right up until today.
Deputy Prime Minister Gan Kim Yong said Singapore may face the burden of higher prices if the conflict in the Middle East continues for long, in a recent interview
The relationship is glaring, as it can impact energy costs and inflation, which affect business operating costs, trade and supply chain disruptions, and hence will directly impact the job market and skills in demand. Speaking in Parliament on March 2, DPM Gan said geopolitical conflicts will significantly impact a small and open economy like Singapore. Referring to The Straits Times, it was reported that he (DPM Gan) emphasised that “in the near term, this could result in an increase in global energy prices,” he said. “Depending on how stretched the conflict is, higher energy prices could lead to higher costs for businesses and consumers and weigh on the global and Singapore economies.”
The rising energy costs from the Middle East crisis can set off a chain reaction across Singapore’s economy. As fuel and electricity prices increase, inflation pushes up the cost of living for households and raises operating expenses for most businesses, but directly in energy-intensive sectors like transport, logistics, manufacturing, and aviation. Companies facing higher costs may slow expansion, delay hiring, or favour efficiency-driven solutions such as automation and digitalisation.
Trade and supply chain disruptions can further impact imports, exports, and production costs, tightening margins and making hiring more selective. Hence, jobseekers are likely to encounter a preference for contract or flexible roles over permanent positions, while sectors such as energy, logistics, and digital services may shift skill demands, which is already happening due to AI and now, coupled with the Middle East crisis, will tighten job availability options.
In this environment, employers increasingly prioritise candidates with skills in digitalisation and other specifications to adapt to economic pressures.
To weather the storm, youth should stay aware of global and local economic shifts, from the Middle East crisis to energy prices and adapt their expectations while building resilience.
