Unemployment rate among S’poreans inches up
The MOM attributed the faster growth in employment in Q3 as a result of growth in services and construction. TODAY file photo
SINGAPORE — Modest growth between July and September pushed up unemployment rate among Singaporeans for the second straight quarter and to its highest in three-and-a-half years, the Ministry of Manpower’s (MOM) latest quarterly employment situation report shows.
There were 51,100 Singaporeans without a job last month, representing a 3.1 per cent unemployment rate, up from 2.9 per cent in June. The climbing jobless rate among citizens did not worsen the overall seasonally adjusted unemployment rate though, which remained unchanged at 2.0 per cent.
At the same time, overall employment grew by 16,400 in the third quarter, faster than in the second quarter (9,700). But the growth was about half that seen a year ago (33,400).
There were 3,644,000 persons holding down jobs last month, which was 1.7 per cent higher than a year ago. The MOM attributed the increase in Q3 to the growth in the services and construction sectors.
Meanwhile, the manufacturing sector — caught in a year-long recession — shed 4,300 jobs.
Layoffs also declined for the third consecutive quarter, with some 2,900 workers having been laid off, down from 3,250 in the preceding quarter.
The climbing unemployment rate among residents and citizens reflects a weakening global economy, and looks set to continue into the next year, said economists.
Based on advance estimates, the Singapore economy grew by 1.4 per cent on-year in the third quarter, compared to 2.0 per cent and 2.6 per cent, respectively, in the first two quarters.
Given the underlying economic situation, businesses are becoming more cautious in terms of taking on new hires, said OCBC economist Selena Ling.
“My sense is that entry-level hiring has softened quite a bit, whereas it’s not so bad for those with experience,” she said. “And although businesses are slightly more cautious now, we don’t see them cutting staff aggressively. People are still hoarding labour, because after the last recession, they’ve realised it’s difficult to hire these workers back when the economy gets better.”
CIMB private banking economist Song Seng Wun said jobseekers should also consider managing their expectations. “The labour market conditions are tougher now, if you ask any young graduates looking for work. But of course, you have to consider their expectations too,” he said. Professionals, Managers, Executives and Technicians will also be hit, especially if they are reluctant to adapt to new jobs, Mr Song added.
Employment growth may have picked up over the last few quarters, but they still trail behind the growth figures of yore, noted Mr Song. This inevitably ties in with the increasing unemployment rate for residents and citizens, he said.
“You might see a slight improvement in the next quarter because there’s usually a spike around the festive season. But this is probably more related to services, rather than other sectors,” said UOB senior economist Alvin Liew, adding that this spike is likely to be fleeting.
