Total employment for the second quarter of 2020 contracted by 121,800, while overall unemployment rates rose from 2.4 per cent to 2.9 per cent from March to June 2020.
The flash figures for the second quarter was announced by the Ministry of Manpower (MOM) during a media briefing on 29 July 2020.
The overall employment figures contracted more than four-folds when compared to the first quarter of the year – Unemployment rose from 3.3 to 3.9 per cent for residents, and 3.5 to 4 per cent for Singapore citizens in the same period.
Manpower Minister Josephine Teo said that the circuit breaker measures from May to June had a part to play in the statistics, adding that the figures were within expectations.
“During that period, a lot of companies would still be in resumption mode … It is to be expected that some companies will decide to trim their workforce,” said Mrs Teo.
In response to the figures, NTUC Assistant Secretary-General Patrick Tay stated that the numbers do not augur well, indicating that the recession will likely continue for the rest of the year.
Mr Tay also said he expects both the retrenchment and unemployment figures to rise in 3Q and 4Q.
“I cannot emphasise enough the importance of our tripartite partners coming together in unison to ride through this rough patch,” he said.
Mr Tay shared that NTUC issued a call on 24 July 2020 for companies to ensure openness, transparency and consultation with unions and workers, and to observe the Fair Retrenchment Framework (FRF) to protect workers’ rights, ensuring fair treatment for workers who are affected by retrenchments.
He also called for non-unionised companies to communicate regularly, openly and transparently with their employees to build trust and understanding amidst this difficult period so as to emerge stronger and more cohesive.
“Retrenchments may be inevitable, but I urge employers to engage the unions early and ensure our workers are protected and treated with respect during this difficult period.
“NTUC and the unions will always be here for our workers and we are prepared to help workers as we have done so with our Job Security Council and we urge companies to step forward to form company training committees to identify potential job lost and take pre-emptive approach,” said Mr Tay.
Mrs Teo mentioned that while there have been contractions in the manufacturing sector, there are still opportunities to be seized.
“Within manufacturing, there are pockets that are still hiring,” she said.
She elaborated that certain electronics and precision engineering companies were still hiring workers to help transform their businesses, as well as to replace the workforce of those affected by the Malaysia Movement Control Order.
Other sectors that the Manpower Minister noted that has potential to hire included healthcare and early childhood education.
In a joint release issued by the SG Jobs & Skills Centre, MOM and Workforce Singapore (WSG), mid-career jobseekers may consider taking up traineeships amidst the employment slump.
There will be more than 13,000 company attachments available across various sectors under the SGUnited Mid-Career Pathways Programme.
Roles include business development managers, software engineers, finance analysts and e-commerce associates.
Attachments duration can vary from anywhere between four to nine months, with participants receiving a monthly training allowance between $1,400 to $3,000. Of which, 80 per cent will be funded by the Government.
To date, more than 6,400 organisations have indicated interest to offer more than 35,000 positions through the SGUnited Traineeships Programme – a number that exceeds the number of fresh and recent graduates.
Speaking to the press following the media briefing, Deputy Prime Minister Heng Swee Keat urged workers to be adaptive when it comes to seeking employment.
He said: “We all need to change and adapt. On the part of job seekers, we need to change our mindsets.”
Mr Heng also noted that although employers would naturally want to hire the most suitable staff, employers should consider hiring those who are more willing to adapt and learn new skills.
“Employers must redesign jobs so that they can make the best use of the skills of the workers,” he said.
