Total employment in Singapore rose, with non-resident employment growth – mainly work permit holders in the construction sector – forming the bulk of the increase.
The growth is due to the relaxation of border measures in recent months, according the Ministry of Manpower (MOM). MOM released the advance estimates for the first three months of this year on 28 April 2022.
Unemployment and retrenchments in the first quarter of 2022 also continued its strong recovery momentum from the previous quarter.
In a Facebook post, NTUC Assistant Secretary-General Patrick Tay commented: “Good news is that Q1’s figures are comparable to pre-COVID times.
“In fact, because of the tight labour market and sharp growth in demand for manpower in selected sectors fuelled by the easing of SMM measures, travel restrictions and pent-up demand, I expect that we will continue to see positive improvements in the labour market in Q2 and throughout 2022.”
Preliminary data for Q1 2022 showed that total employment, except for migrant domestic workers (MDW) grew by 41,100 – slightly lower than the 47,900 figure reported in the previous quarter.
With the progressive lifting of border restrictions, there was a significantly greater increase in non-resident employment than that of resident employment, as employers replenished their non-resident workforce, MOM said.
Trends were mixed across sectors for resident (Singapore citizens and permanent residents) employment, with steady growth in outward-oriented sectors such as information & communications and financial services.
On the other hand, there was a decline in sectors such as food and beverages, retail, and accommodation – which typically experience employment declines following seasonal hiring for the year-end festive period in the fourth quarter.
After returning to pre-COVID levels in February 2022, resident and citizen unemployment rates remained unchanged at 3.0 per cent and 3.2 per cent respectively.
Overall unemployment rate, however, edged up slightly from 2.1 per cent to 2.2 per cent, which is comparable to pre-COVID rates.
Retrenchments fell to a record low of 1,300, or 0.6 retrenched per 1,000 employees, amid a tight labour market.
Employers attributed most of the retrenchments to reorganisation or restructuring.
As economic recovery continues to drive demand for workers, MOM expects resident unemployment rates to stay low, and resident employment to continue to grow modestly.
Non-resident employment is also projected to continue its recovery, especially with the significant relaxation of border measures from April 2022.
Nevertheless, global economic uncertainties have increased downside risks to economic growth.
Factors such as the Russia-Ukraine conflict, global supply disruptions, monetary policy tightening in advanced economies, and continued uncertainty over the trajectory of the pandemic could affect business sentiments and profitability, and in turn, labour demand.
The full Labour Market Report for the first quarter of 2022 will be released in mid-June 2022.
The report will provide more details – including the breakdown of resident and non-resident employment, sectoral breakdowns, number of job vacancies, labour turnover, and re-entry rates among retrenched residents.
