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Unemployment rates continue falling, fewer layoffs in first quarter of 2018: MOM

SINGAPORE — Supported by the sustained expansion in economic activity, the labour market improved slightly in the first quarter of this year, resulting in fewer layoffs and lower unemployment rates.

SINGAPORE — Supported by the sustained expansion in economic activity, the labour market improved slightly in the first quarter of this year, resulting in fewer layoffs and lower unemployment rates.

Releasing its advance labour market report for first quarter of 2018, the Manpower Ministry’s (MOM) preliminary data shows that unemployment rates have continued to decline since March 2017.

The seasonally adjusted overall unemployment rate dropped from 2.1 per cent in December last year to 2 per cent in March this year.

The resident unemployment rate also fell from 3 per cent to 2.8 per cent in the same period quarter-on-quarter, while citizen unemployment rate remained constant at 3 per cent.

Following a seasonal increase in total employment — excluding foreign domestic workers — in the fourth quarter of last year, total employment shrunk by 2,100 in the first quarter of this year. The MOM attributed this drop largely to a decrease in work permit holders in the construction and marine shipyard industries.

However, the decline was smaller than the same period a year ago, as contraction in both industries have moderated.

In terms of retrenchments, there were fewer in the first quarter of this year — 2,100 — compared to the previous quarter — 3,680 — and the same period a year ago (4,000). The manufacturing, construction and services sectors saw a drop in layoffs over this quarter.

Within service sectors, employment has continued to grow in areas such as finance and insurance, as well as transport and storage.

Job opportunities also continue to be available in sectors such as manufacturing, the MOM said, adding that hiring is expected to remain cautious, however, in sectors such as construction and marine shipyard.

Despite the drop in unemployment rates from a year ago, the ministry warned that it would be difficult to improve the rates further.

“Addressing potential job-skills mismatches remains critical, as the economy restructures and the profile of the resident labour force evolves,” it said.

The MOM added that, along with Workforce Singapore, it will support workers in upgrading their skills and securing better employment outcomes through the Adapt and Grow initiative, and help businesses transform and grow through the Lean Enterprise Development Scheme and the Capability Transfer Programme.

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