Singapore’s labour market continued to improve in the third quarter of 2022 (3Q2022)
Total employment expanded by 75,900 in 3Q2022, which was more than the 66,500 in the previous quarter. Compared to 2019, it is now 1.7 per cent higher.
The number of non-residents workers increased by 71,100, while resident employment went up by 4,800.
However Ministry of Manpower (MOM) has warned that there are early signs that the momentum was easing. Retrenchments registered slightly higher from the previous quarter, with tech firms laying off more workers.
Non-resident employment grew more quickly as it has yet to recover to its pre-COVID level. Resident employment is 4.4 per cent above the 2019 level, according to MOM.
Manufacturing and construction sectors saw the concentration in increase of foreign workers.
Whilst
Financial services, professional services, accommodation and information & communications sectors saw employment growth of residents.
With rising total employment and significant uncertainties in the economic outlook, the total number of job vacancies decreased in September to 108,200.
Even though the labour market continues to see improvement and labour demand remains robust, there are downside risks going forward with uncertain geopolitical conditions and higher global inflation will weigh on the labour market going forward.
There were 1,120 retrenchments, up from a record low of 830 in the previous quarter.
The increase came mostly from technology firms, which retrenched 460 people, up from 110 in Q2. However, vacancies in the technology sector remained high, suggesting that these retrenchments were a consequence of restructuring efforts within the sector.
Meanwhile, it is noteworthy the percentage of retrenched residents who found employment within six months post-retrenchment is comparable to pre-COVID rates.
“The number of employees placed on short work-week or temporary layoffs rose to 920 from 600 in the last quarter, but remained low compared to pre-pandemic levels,” MOM was quoted as saying.
The overall unemployment rate remained below pre-pandemic level at 2 per cent. Resident unemployment was at 2.8 per cent, and the citizen unemployment rate was 3 per cent.
