Unemployment rose among residents aged 30 and above, and in particular among those aged 50 and above for the fourth consecutive quarter, according to the Ministry of Manpower.
SINGAPORE: More older workers were jobless in the first quarter of this year, despite unemployment among Singapore citizens and residents declining, according to figures released by the Ministry of Manpower (MOM) on Monday (Jun 13).
Unemployment among Singapore citizens decreased from 3 per cent in December 2015 to 2.6 per cent in March 2016. Among Singapore residents, unemployment fell from 2.9 per cent to 2.7 per cent.
Overall, the unemployment rate remained unchanged at 1.9 per cent.
However, older workers continued to be hit harder by unemployment, with job losses rising among residents aged 30 and above. In particular, the jobless rate for those above 50 went up for the fourth consecutive quarter, the ministry said.
This increase was offset by the decline in the unemployment rate for younger residents, due to the lower labour force participation rate among youths aged 15 to 24.
“In many countries, older workers aged over 50 tend to be more vulnerable to retrenchment for a variety of reasons, including perceptions by companies that older workers may have outdated technical skills and may be less adaptable to switching to new roles within their company,” Mr Rajiv Biswas, Asia-Pacific chief economist at IHS Global Insight, said.
“Another factor that may affect older workers is that their compensation packages may be higher than for younger workers with less experience, which may play a role when companies are trying to cut costs,” he added.
In particular, older Professionals, Managers, Executives, and Technicians (PMETs) have borne the brunt in terms of job losses and re-entry into employment as businesses restructure amid a slowing economy.
"It is a reflection of the economic structuring," Credit Suisse economist Michael Wan told Channel NewsAsia. "As companies continue to cut headcount amid the economic headwinds, older PMETs continue to be retrenched."
LAYOFFS IN Q1 HIGHEST SINCE 2009
The local labour market has shown signs of slackening as a confluence of negative factors including a slower-growing China, the biggest destination for Singapore's non-oil domestic exports, and sluggish global demand weighed on the all-important manufacturing sector.
Singapore’s economy expanded 1.8 per cent in the first three months of 2016, holding steady from the previous quarter.
But analysts are less upbeat about growth for the rest of the year. IHS’ Mr Biswas, for one, expects Singapore’s gross domestic product (GDP) to slow to 1.7 per cent in 2016, indicating that the “labour market conditions will continue to be soft” during the second half of 2016.
Credit Suisse's Mr Wan agreed, noting that the trend of rising redundancies will continue as a gloomy economic outlook continues to weigh on corporate earnings and, as a result, any potential hiring.
For the first quarter, while the number of workers laid off from their jobs fell to 4,710 in the first quarter, the figure was the highest number of first-quarter redundancies since 2009, MOM said. 5,370 workers were retrenched in December 2015.
Meanwhile, unemployed residents found it harder to find jobs.
About 46 per cent of residents made redundant in the fourth quarter of 2015 found jobs by March, down from 50 per cent in the previous quarter – marking the lowest since June 2009.
“Amid softer economic conditions and as the economy restructures, redundancies are expected to rise in sectors affected by weak external demand,” MOM said, adding that it will continue to work closely with tripartite partners to help those laid off find jobs.
Total employment grew by 13,000 in the first quarter, lower than the seasonal high growth of 16,100 in the fourth quarter of 2015. Even though total employment growth in the first quarter of 2016 was a reversal from the decline of 6,100 in the same period last year, it was significantly lower than 2013 and 2014, MOM said.
The ratio of job openings to job seekers declined to 103 openings per 100 job seekers in March, the lowest since June 2012, the ministry added.
http://www.channelnewsasia.com/news/singapore/more-older-workers/2867232.html?cid=FBcna
SINGAPORE: More older workers were jobless in the first quarter of this year, despite unemployment among Singapore citizens and residents declining, according to figures released by the Ministry of Manpower (MOM) on Monday (Jun 13).
Unemployment among Singapore citizens decreased from 3 per cent in December 2015 to 2.6 per cent in March 2016. Among Singapore residents, unemployment fell from 2.9 per cent to 2.7 per cent.
Overall, the unemployment rate remained unchanged at 1.9 per cent.
However, older workers continued to be hit harder by unemployment, with job losses rising among residents aged 30 and above. In particular, the jobless rate for those above 50 went up for the fourth consecutive quarter, the ministry said.
This increase was offset by the decline in the unemployment rate for younger residents, due to the lower labour force participation rate among youths aged 15 to 24.
“In many countries, older workers aged over 50 tend to be more vulnerable to retrenchment for a variety of reasons, including perceptions by companies that older workers may have outdated technical skills and may be less adaptable to switching to new roles within their company,” Mr Rajiv Biswas, Asia-Pacific chief economist at IHS Global Insight, said.
“Another factor that may affect older workers is that their compensation packages may be higher than for younger workers with less experience, which may play a role when companies are trying to cut costs,” he added.
In particular, older Professionals, Managers, Executives, and Technicians (PMETs) have borne the brunt in terms of job losses and re-entry into employment as businesses restructure amid a slowing economy.
"It is a reflection of the economic structuring," Credit Suisse economist Michael Wan told Channel NewsAsia. "As companies continue to cut headcount amid the economic headwinds, older PMETs continue to be retrenched."
LAYOFFS IN Q1 HIGHEST SINCE 2009
The local labour market has shown signs of slackening as a confluence of negative factors including a slower-growing China, the biggest destination for Singapore's non-oil domestic exports, and sluggish global demand weighed on the all-important manufacturing sector.
Singapore’s economy expanded 1.8 per cent in the first three months of 2016, holding steady from the previous quarter.
But analysts are less upbeat about growth for the rest of the year. IHS’ Mr Biswas, for one, expects Singapore’s gross domestic product (GDP) to slow to 1.7 per cent in 2016, indicating that the “labour market conditions will continue to be soft” during the second half of 2016.
Credit Suisse's Mr Wan agreed, noting that the trend of rising redundancies will continue as a gloomy economic outlook continues to weigh on corporate earnings and, as a result, any potential hiring.
For the first quarter, while the number of workers laid off from their jobs fell to 4,710 in the first quarter, the figure was the highest number of first-quarter redundancies since 2009, MOM said. 5,370 workers were retrenched in December 2015.
Meanwhile, unemployed residents found it harder to find jobs.
About 46 per cent of residents made redundant in the fourth quarter of 2015 found jobs by March, down from 50 per cent in the previous quarter – marking the lowest since June 2009.
“Amid softer economic conditions and as the economy restructures, redundancies are expected to rise in sectors affected by weak external demand,” MOM said, adding that it will continue to work closely with tripartite partners to help those laid off find jobs.
Total employment grew by 13,000 in the first quarter, lower than the seasonal high growth of 16,100 in the fourth quarter of 2015. Even though total employment growth in the first quarter of 2016 was a reversal from the decline of 6,100 in the same period last year, it was significantly lower than 2013 and 2014, MOM said.
The ratio of job openings to job seekers declined to 103 openings per 100 job seekers in March, the lowest since June 2012, the ministry added.
http://www.channelnewsasia.com/news/singapore/more-older-workers/2867232.html?cid=FBcna
