According to the Labour Market Advance Release for 2016, the unemployment rate went up for residents and citizens both in the fourth quarter and for the whole of 2016. Redundancies were also higher for the whole year.
However there was a bright spark, with local employment growing last year after remaining flat in 2015.
The advance figures were released by the Ministry of Manpower (MOM) on 26 January 2017.
Fourth Quarter Numbers
For the fourth quarter of 2016, the seasonally adjusted unemployment rate rose from 2.1per cent in September 2016 to 2.2 per cent in December 2016.
For residents, it was from 2.9 per cent to 3.2 per cent and citizens, 3.0 per cent to 3.5 per cent.
According to MOM, this occurred even as employment grew with more people entering the labour force to look for work.
With the seasonal hiring for year-end festivities, total employment grew in the fourth quarter of 2016, compared to the contraction in the third quarter.
Redundancies were also higher in the fourth quarter of 2016, with 5,300 workers laid off compared to 4,220 in the third quarter.
Full Year 2016
For the whole of last year, Singapore’s unemployment rate rose to its highest since 2010. For 2016, it was 2.1 per cent.
The increase was broad based across most age and education groups.
Particularly affected were residents aged 30 to 39 and 50 and over, as well as those with secondary and degree qualifications.
The groups were mainly professionals, managers, executives and technicians (PMETS) and mature workers.
Meanwhile, the local employment went up by an estimated 10,700 in 2016, rebounding from the flat growth in 2015.
The growth was seen in many services sectors, including community, social and personal services, professional services and transportation and storage services.
Foreign employment, excluding foreign domestic workers, contracted in 2016, the first time since 2009. The decline was mainly in the construction and marine sectors.
For the whole of 2016, redundancies rose to 19,000, mainly due to restructuring and a slower economy.
MOM emphasised that redundancies have been trending up since 2010, but have remained lower than the recessionary high in 2009.
Labour Movement’s Concerns
Responding to the MOM report on his Facebook page, NTUC Assistant Secretary-General (ASG) and Director of the Future Jobs, Skills and Training Department (FJST) Patrick Tay said the increase in resident unemployment to 3.2 per cent in December 2016 is a concern, even though employment went up in the fourth quarter.
As for redundancies, ASG Tay said the layoff trend in the unionised sector corresponded with the national figures.
“While redundancy may be inevitable in certain circumstances, we urge companies to carry it out in a fair, responsible and sensitive way. With continued uncertainties and challenges this year and the coming years, it further amplifies the need for us to look at future jobs, skills and training so that our workers stay ready, relevant and resilient,” added ASG Tay.
He called on the tripartite partners and the various government economic agencies to work even closer together to support each other and to leverage on the various programmes and funding so that workers can adapt and grow and companies can transform and grow.
