A recovery in Singapore’s labour market is seemingly in sight, thanks to a rebound in income levels and a rise in the employment rates of residents. However, several other labour indicators are seen to continue lagging behind pre-pandemic levels, advance estimates released by the Ministry of Manpower (MOM) reveals.
The overall employment rate of residents aged 15 and above rose to 67.2% in June, compared to 64.5% a year ago. This is higher than the pre-pandemic level of 65.2% seen in June 2019.
The improvement – which is broad-based across demographic profiles – is in line with Singapore’s economic recovery and the impact of government measures such as the SGUnited Jobs and Skills Package (SGUJS), Jobs Support Scheme (JSS) and Jobs Growth Incentive (JGI), MOM notes.
Over 146,000 jobseekers had been placed into jobs, attachment and training opportunities under the SGUJS, as of end-September. Meanwhile, the JGI had aided 58,000 businesses in hiring over 400,000 locals between September 2020 and May this year.
Interestingly, the employment rate of youths – aged between 15 and 24 – rose to 37.2% in June, from 30.9% in the previous year. This followed a higher take up of part time or temporary work amongst students, says MOM.
In the same regard, the employment rate of seniors – loosely defined as persons aged 65 and above – edged up to 31.7% in June, from 28.5% in the year before. MOM attributes this to initiatives such as the Senior Worker Early Adopter Grant, that facilitated their inclusion into the workforce.
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Overall, 88% of resident employees were in permanent roles. This follows a 50,900 increase in the number of individuals under this classification.
Despite the pickup in employment levels, Singapore’s unemployment rates remained elevated.
The unemployment rate for PMETs (professionals, managers, executives and technicians) edged down from 3.5% to 3.4% in June. The figure stood at 2.9% in June 2019.
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Similarly, the resident unemployment rates for non-PMETs dropped to 5.1% in June, compared to 6.4% a year ago. This, however, was still higher than the pre-pandemic level of 4.7%.
Even so, MOM stresses that “these rates have yet to return to pre-Covid rates”. What this suggests is that some workers who had previously been displaced, have been facing challenges in their job search.
Meanwhile, resident long-term unemployment rates held steady at 0.8% for PMETs and 0.9% for non-PMETs after increasing last year, MOM reflects.
Rising income
The incomes of residents– which includes Singaporeans and permanent residents – rose to pre-Covid-19 levels this year, a turnaround from 2020 when it took a hit for the first time in 16 years due to the effects of the pandemic.
The nominal median income of full-time employed residents (including central provident fund contributions) grew by 3.2% in June. This is a turnaround from the 0.6% decline seen in the previous year.
Preliminary data indicates that after accounting for inflation, real median income grown came in at 1.1%, more than offsetting the decline of 0.4% seen in 2020.
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Real income of full-time employed residents at the 20th percentile rose by 4.6% in June, recovering to around pre-Covid-19 levels, notes MOM. Including government transfers, the income of this group surpassed its pre-Covid-19 level by 0.6% per annum.
Over the five years from 2016 to this year, the real income growth of lower-wage workers “remained strong, enabling them to continue to gain ground on median incomes”, the ministry said.
Photo: Samuel Isaac Chua of The Edge Singapore
