Resident employment rose for the second consecutive quarter while unemployment rates fell for the second consecutive month in the fourth quarter of 2020.
The advance estimates released by the Ministry of Manpower’s (MOM) Manpower Research and Statistics Department on 28 January 2021 showed a broad improvement in the labour market in the final quarter of last year.
MOM stated that “resident employment had rebounded to pre-COVID levels” by the end of 2020, despite resident unemployment rate in that period remained higher than in December 2019.
Non-resident employment accounted for all of the total employment contraction last year, contracting by 16 per cent, or 181,500. This suggested that resident workforce participation was sustained despite the pandemic as more jobseekers joined or remained in the workforce than those who exited, said MOM.
Speaking during a visit to interior design firm WEDA Studio Inc, Manpower Minister Josephine Teo called the extent of the rebound in resident employment “quite significant”.
“This shows how our local workers have been very resilient and adapted well to the current situation. The message of maintaining a strong Singaporean core has also been supported by employers,” she said.
Mrs Teo also attributed the rebound to schemes such as the Jobs Support Scheme (JSS), SGUnited Jobs and Skills Package, as well as the tripartite partners’ efforts, the National Wage Council (NWC) Guidelines, and NTUC working together with employers to help displaced workers.
In response to the report, NTUC Assistant Secretary-General Desmond Choo posted on his Facebook page, saying that it is heartening to know that efforts to save jobs and encourage hiring have paid off.
He wrote: “This is only possible when employers and workers agree on cost-saving arrangements to help business tide through this crisis, such as accepting wage reductions, organising the redeployment of workers and tapping on various training grants.”
Resident Employment
Resident employment grew by 9,300 in 2020 due to improvements in the second half of the year.
As business activities regained momentum, resident employment grew by 28,900 in 4Q 2020 after increasing by 43,200 the previous quarter.
Resident employment grew in areas such as Services – primarily in Public Administration and Education. Seasonal hiring for the year-end festive period also helped boost employment in sectors such as F&B services.
Areas in which resident employment declined were mostly COVID-19 hard-hit sectors such as accommodation, wholesale trade, and retail trade.
Resident employment managed modest growth of 9,300 in 2020
Non-Resident Employment
However, non-resident employment declined to -42,400 in the last quarter, with total employment further contracting by 13,500.
Total employment continued to decline in areas such as manufacturing and construct due to reductions in non-resident work permit Holders.
Non-resident employment made an overall employment decline of 172,200.
Retrenchment
Retrenchments in every quarter of 2020 were higher than of 2019.
The total number of retrenchments in 2020 is expected to be at 26,570.
The number of retrenchments in 4Q 2020 is expected to be lower than in 3Q 2020, which stood at 9,120.
MOM noted that this was the first decline after five quarters of consecutive increases, and it remains to be seen if the reduction in overall retrenchments can be sustained in 2021.
