Resident and citizen unemployment rates continue upward trend in 2Q19: MOM

These were some of the findings from Singapore’s latest labour market report issued by the Ministry of Manpower (MOM) which is based on preliminary data.

MOM says that the increase in unemployment rate among residents and citizens was partly due to more people entering the labour force to look for jobs now, in anticipation of the slowdown in pace of hiring amids uncertain economic conditions.

Total employment -- excluding foreign domestic workers -- grew by 4,000 in 2Q19, lower than the figure of 10,700 from the previous quarter and 6,500 from the preceding year.

MOM says employment growth remained robust in sectors such as Information & Communications, Professional Services, Community, Social & Personal Services and Financial Services, although the increases were mostly offset by the decline in employment in Retail Trade. As a result, employment growth in Services slowed.

In addition, employment in Construction picked up. However, employment in Manufacturing continued to contract for the third straight quarter, as output declined.

There were 2,300 retrenchments in 2Q19. This was lower than the 3,230 from the previous quarter and 3,030 a year ago - which suggests that while firms had slowed down their hiring, they were not laying off existing workers.

Over the quarter, declines were observed in all three broad sectors. Services continued to form the bulk of retrenchments (74%), followed by Manufacturing (22%) and Construction (4.3%).

MOM says that it is working together with Workforce Singapore (WSG) and tripartite partners to closely monitor the labour market situation.

The Taskforce for Responsible Retrenchment and Employment Facilitation is also proactively reaching out to retrenched workers to provide them with timely employment support, including job matching.