Unemployment rate down across the board in June
Singapore’s unemployment situation improved across the board in June 2024, according to preliminary labour market data for the second quarter of 2024 released on July 31.
The Ministry of Manpower (MOM) said in its report on the data that the unemployment rate of Singaporeans fell from 3 per cent in May 2024 to 2.8 per cent in June 2024.
The unemployment rate of residents, which refers to Singaporeans and permanent residents, likewise declined from 2.9 per cent to 2.7 per cent over the same period, while the overall rate fell from 2.1 per cent to 2 per cent.
These figures fall within the range seen in the non-recessionary years of 2015 to 2019.
Meanwhile, the number of residents working in growth sectors, which tend to hold better job and salary prospects, continued to rise in the second quarter of 2024.
These sectors include financial services, information and communications, health and social services, as well as professional services, noted MOM, without providing figures.
Sectoral figures and other details will be reflected in finalised labour market data only for the quarter set for release in September.
The data also showed that the increase among growth sectors was offset by a seasonal decline in the number of residents working in the retail trade, leading to a decline in the overall resident employment.
MOM said this is because employers temporarily hire more workers in the fourth quarter of each year in preparation for year-end festivities.
“While resident employment contracted slightly, this was not unexpected as resident employment typically dips or posts smaller increases in the second quarter,” it added.
Still, total employment in Singapore grew by 11,300, outpacing the growth of 4,700 seen in the first quarter of 2024.
The faster growth was driven by an increase in non-resident employment, which accounted for all the employment growth in the second quarter, MOM said.
It added that this non-resident employment growth came from lower-skilled work permit holders working in non-PMET (professional, managerial, executive and technical) roles in construction and manufacturing, which residents do not typically take on.
“The rise in construction after the contraction last quarter reflected firms adapting to the sector’s change in dependency ratio ceiling,” MOM said, referring to the quota of foreign workers in relation to local hires among employers.
The ministry also said a rebound in non-resident employment from the previous quarter suggested continued demand for labour in the economy.
It noted that employment grew for both residents and non-residents overall for the first half of 2024.
MOM also found that there were 3,100 retrenchments in the second quarter, which is comparable to the 3,030 in the previous quarter.
Retrenchments in the services sector, at 2,200, made up the bulk of retrenchments.
The manufacturing sector cut 700 jobs, while the construction sector retrenched 200 workers.
Retrenchment levels were broadly stable in most sectors, with business reorganisation or restructuring remaining the top reason for retrenchments in the quarter, the ministry said.
MOM added that its forward-looking polls on hiring and wage expectations for the third quarter were unchanged from the previous quarter.
It said: “As a result, we expect labour market momentum to be sustained in the coming quarters, with employment and wages continuing to grow in tandem with an expected gradual pickup in Singapore’s economy.
“However, with slowing resident workforce growth and low resident unemployment rates, continued growth in resident employment is likely to become more muted.”
Get The New Paper on your phone with the free TNP app. Download from the Apple App Store or Google Play Store now