Advance estimates for the third quarter of 2020 indicate some improvement in the labour market, with resident employment showing some recovery.
The Ministry of Manpower’s (MOM) Manpower Research and Statistics Department released its findings on 30 October 2020.
Total employment has continued to contract, but at a significantly slower rate than the previous quarter. Unemployment rates and retrenchments also continued to increase, albeit at a slower pace.
Resident employment grew in the third quarter this year. Findings also indicated that total employment contracted at a significantly slower pace than the second quarter.
The total employment excluding foreign domestic workers (FDWs) contracted by -103,800 in the second quarter. Meanwhile, the total employment flash figures for the third quarter show the contraction to be roughly a quarter of that – down to -29,900.
The findings also indicated that employment cuts were sharpest in the construction and manufacturing sectors.
In the service sectors, employment growth was shown mainly in the community, social and personal services, as well as the food and beverage services.
In September 2020, there were 112,500 unemployed residents, of which 97,700 were citizens.
The findings showed that while unemployment rates continued to rise, it did so at a slower pace.
The rate of increase was between 0.1 - 0.2 per cent, as opposed to the 0.3 -0.4 per cent noted in the previous months.
The number of retrenchments in the third quarter is expected to come in at 9,100 – higher than the peak of the previous recessions, save for the 2009 Global Financial Crisis which saw 12,760 retrenchments in the first quarter of the year.
The number of retrenchments in the third quarter is expected to be slightly above the second quarter of 2020, reflecting a small rise in retrenchments between the two periods.
Retrenchments are expected to rise in the manufacturing and services sectors, and primarily in the arts, entertainment and recreation, and air transport.
Construction, on the other hand, is likely to see a decline in retrenchments with the gradual resumption of activities.
“There remains significant uncertainty over the length and severity of the COVID-19 outbreak, as well as the global economy’s trajectory of recovery. The Government and our tripartite partners are fully committed towards walking the journey with our businesses and jobseekers so that we can emerge stronger from the crisis,” said MOM in a statement.
NTUC Assistant Secretary-General Patrick Tay said in a Facebook post that the Labour Movement would continue to work closely with the Government, through the Taskforce for Responsible Retrenchment and Employment Facilitation, to assist affected workers.
“At such a time when workers are anxious about their livelihoods, NTUC will also build on our momentum to help at-risk or displaced workers find new jobs through the NTUC Job Security Council, with the aim of shortening the unemployment period for workers; but also to help companies with a smoother process to employ good workers.
“These efforts aim to ultimately support the National Jobs Council’s work, in matching jobseekers to good job opportunities, and helping them gain new skills to take on new roles in sectors that continue to do well,” he added.
Mr Tay also urged workers to tap on available programmes – such as the SGUnited Jobs and Skills Package, additional SkillsFuture credit top-ups, and NTUC’s Union Training Assistance Programme (UTAP) for union members – to prepare for the eventual recovery of the labour market.
Meanwhile, NTUC Assistant Secretary-General Desmond Choo said the rising retrenchments numbers are still a concern, and he foresees that economic uncertainties will continue to persist due to weaker global demand and closed borders.
He said: “The labour market will continue to be under pressure. The retrenchments will likely continue to rise as companies adjust their business plans for a longer winter.”
Citing the recent NWC guidelines, Mr Choo encouraged companies who are performing well to reward their workers fairly and to tap on the Jobs Growth Incentive to increase hiring if possible.
He also urged affected companies to tap on cost-saving measures to reduce job losses.
