Total employment in Singapore fell to its sharpest on record in the first half of the year, while retrenchments doubled from pre-crisis levels.
The Ministry of Manpower’s (MOM) Manpower Research and Statistics Department revealed this on 14 September 2020 in its Labour Market Report for Second Quarter 2020.
Total employment contracted by 129,100 in the first half of 2020. The figure excludes foreign domestic workers (FDW).
Meanwhile, unemployment figures, although still below the highs of previous recessions, also rose in the second quarter.
Resident unemployment increased by 0.4 per cent to 2.8 per cent and citizen unemployment increased by 0.5 per cent to 3.8 per cent.
Retrenchment numbers also grew in the second quarter, standing at 8,130. Total retrenchment numbers were 10,120 for the first half of the year.
In a Facebook post, NTUC Assistant Secretary-General Patrick Tay said: “All these indicators do not augur well and suggest that the recession will likely continue for the rest of the year.
“I expect both retrenchment and unemployment figures to continue to increase in Q3 and Q4 especially with continued restricted travel, COVID-19 safe management measures and restrictions, as well as an overall uncertain local/global outlook and stance across many industries.”
In a statement, MOM said it believes that Government support measures and cost-saving measures adopted by firms may have cushioned the overall impact on jobs.
Job Vacancies
The report also revealed a drop in labour demand.
The number of seasonally adjusted job vacancies in June 2020 fell to 42,400, which was the lowest seen over the last decade, but still higher than the 24,700 vacancies reflected in 2009 due to the Global Financial Crisis.
Work Arrangements
The number of employees placed on short workweek or temporary layoff rose to an unprecedented high of 81,720 in the second quarter, and 85,910 for the first half of 2020.
The report indicated that of the 42,190 who were placed on short workweeks, locals formed the majority of the group. Of the 43,720 employees placed on temporary layoff, the majority were foreigners.
The reported noted that the adoption of such temporary cost-savings measures helped businesses mitigate the impact of the economic slowdown.
Hours Worked
Average paid hours worked registered its largest quarterly drop on record (fell by 1.0 hour to 43.4 hours in June 2020), due to a reduction in overtime hours.
Labour Turnover
Labour turnover saw a drop during the second quarter.
The report found that employers deferred hiring, and employees were less likely to leave their jobs due to fewer opportunities in the job market.
The seasonally adjusted recruitment rate was at 1.1 per cent. In comparison, the resignation rate was at 1.2 per cent – unprecedented lows not seen in past recessions.
Sectorial Impact of COVID-19
Sectors hardest hit by COVID-19 typically rely more on non-PMET workers, according to MOM.
This has resulted in comparatively weaker labour market outcomes for non-PMETs in the last quarter.
Most heavily impacted sectors include manufacturing, construction, wholesale and retail trade, accommodation and food services, and arts, entertainment, and recreation.
The least impacted sectors include electronics manufacturing; information and communications, public administration and education, health and social services, and financial and insurance services.
Mr Tay added that businesses should press on to find and pivot to new opportunities, with workers embracing the transformation of the jobs, and the reskilling that comes with transformation.
“I encourage jobseekers to look further beyond their previous sectors and occupations to consider career switches to these new areas of growth, and set themselves on a stronger career pathway,” he said.
