Singapore’s 1Q2021 total employment grew for the first in four consecutive quarters, pointing to signs of continued recovery from Covid-19.
However, the Ministry of Manpower (MOM) says Singapore is not out of the woods yet, as unemployment rates remain elevated, with uncertainties from Phase 2 (Heightened Alert) restrictions expected to impact the labour market recovery.
In its 1Q2021 labour market report released on June 17, MOM highlights that total employment, excluding migrant domestic workers, expanded by 12,200 in the 1Q, beating preliminary estimates of 4,800 in April.
The higher numbers were driven by better-than-expected resident employment, which increased across industries, led by Information & Communications, Food & Beverage Services, Health & Social Services, Administrative & Support Services, Public Administration & Education, and Professional Services.
The increase in resident employment outweighed the decline in non-resident employment following the restrictions on the inflow of foreign workers due to public health reasons.
Unemployment edged downwards throughout the quarter, with the overall unemployment rate coming in at 2.9% in March. The unemployment rate for Singaporeans came in at 4.2%, while for residents it was 4%.
Nonetheless, MOM highlights that these rates remained elevated compared to pre-Covid19 levels.
See also: Singapore to face labour shortage amid tightened Covid-19 measures
For comparison, the unemployment rates for Singaporeans and residents were 3.3% and 3.1% respectively in 2019 – before the pandemic had hit.
In the 1Q2021, the number of retrenchments declined for the second consecutive quarter at 2,270, given the economic recovery and fewer retrenchments due to restructuring and reorganising.
As business activities picked up, the number of employees who were placed on short work-week or temporary layoff continued to decline from 8,710 in the 4Q2020 to 4,020 in the 1Q2021.
However, similar to unemployment rates, MOM cautions that this remains high compared to pre-pandemic quarters which saw an average of around 740.
On a brighter note, the number of job vacancies on a seasonally adjusted basis increased further to 68,400 in March, exceeding the last high of 65,500 in March 2015. The ratio of job vacancies to unemployed persons improved to nearly 1 job vacancy for every unemployed person in March (0.96), an increase from a ratio of 0.75 in December 2020. The ratio in March 2021 was within the range observed in pre-Covid years of 2018 – 2019.
Job vacancies were reported in all industries, in particular Manufacturing (mainly in Fabricated Metal Products, Machinery & Equipment and Electronics), Public Administration & Education, Construction, Information & Communications and Financial Services.
Looking ahead, MOM expects foreign employment to continue being impacted by Covid-19-related border restrictions, which may result in manpower shortages in sectors like construction.
To alleviate the shortage, MOM and BCA introduced a time-limited flexibility to allow new Work Permit Holders to obtain their skills certification in Singapore. This will make it easier for employers to hire workers from PRC where the COVID-19 situation is more stable, and fewer restrictions are in force.
MOM also highlights the ongoing initiatives in palace to support local hiring, reskilling and job redesign, including the Jobs Growth Incentive, the SGUnited Jobs and Skills Package, the Industry 4.0 Human Capital Initiative (iHCI) and the Support for Job Redesign under the Productivity Solutions Grant (PSG-JR).
