Unemployment rate fell in Sept as labour market continues uneven recovery: MOM

SINGAPORE — Unemployment rates declined for the second straight month in September, but remained higher than pre-pandemic levels, in an indication of continued, albeit uneven, improvements in the labour market, the Ministry of Manpower (MOM) said on Friday (Oct 29).

In another sign of the gradual recovery of the labour market, total employment declined at a slower pace in the third quarter, compared with the previous quarter, as growth in resident employment helped to offset a continued sharp drop in foreign manpower.

Resident employment grew in the third quarter especially in outward-oriented sectors such as professional services, information and communications, and financial services, MOM said in its advance estimates of how the labour market performed in the third quarter.

MOM's permanent secretary Aubeck Kam noted during a media briefing on Friday that there has been unevenness across sectors in recovery, in part due to the impact of extended Covid-19 safety measures in the third quarter.

“We expect the mixed employment trends to continue into the next quarter, especially sectors affected by the recent extension of the stabilisation phase measures such as food-and-beverages services and retail trade,” he said.

“On the other hand, we expect an uplift to sectors such as air transport services due to the developments on the travel front, especially with the opening up of more vaccinated travel lanes.”

UNEMPLOYMENT

The resident unemployment rate, which comprises Singapore citizens and permanent residents, declined to 3.5 per cent in September from 3.6 per cent the month before.

The unemployment rate has been falling since its peak of 4.8 per cent in September last year.

In June this year, it had fallen to 3.5 per cent, but due to tighter safe distancing regulations imposed from May 16 to June 13 during the heightened alert phase, the resident unemployment rate climbed back up to 3.7 per cent in July.

Among Singapore citizens only, the unemployment rate dropped to 3.7 per cent in September, from 3.8 per cent a month before.

The overall unemployment rate in September was 2.6 per cent, down from 2.7 per cent in the previous month.

TOTAL EMPLOYMENT

The total number of employed people in Singapore, excluding foreign domestic workers, continued to decline in the third quarter, though at a gentler pace.

There were 3,400 fewer workers in the third quarter, compared to a decline of 16,300 in the second quarter.

While resident employment grew, non-resident employment continued to drop.

More people were employed in outward-oriented sectors such as professional services, information and communications, and financial services.

Companies in the food-and-beverage services, retail trade and accommodation sectors cut their resident workforce.

“This reflected ongoing Covid-19 border restrictions and safe management measures imposed in the third quarter,” MOM said.

RETRENCHMENTS

MOM also said that retrenchments are expected to remain low in the third quarter of this year at 2,000.

This is less than a quarter of the figure recorded a year ago when retrenchment peaked at 9,120.

It is also a decline from the 2,340 retrenchments seen in the previous quarter.