SINGAPORE: More people in Singapore were retrenched in the third quarter of 2023 while the number of job vacancies continued to fall.
According to the Ministry of Manpower's (MOM) latest labour market report on Thursday (Dec 14), retrenchments rose from 3,200 in the second quarter to 4,110 in the third quarter.
The number of job vacancies fell from 87,900 in June to 78,400 in September, reflecting cooling labour demand.
MOM said that despite the weaker economic outlook, the labour market expanded in the third quarter.
RETRENCHMENTS
The increase in retrenchments was driven by job losses in the wholesale trade sector, which saw 1,270 retrenchments in the third quarter, up from 480 in the previous quarter.
"The number of retrenchments in other remaining sectors remained broadly stable," said the ministry.
About 61.9 per cent of the retrenchments were primarily due to reorganisation and restructuring. More firms in the third quarter indicated business and cost concerns as reasons for retrenchments.
The percentage of retrenched residents – Singaporeans and permanent residents – who managed to find a new job within six months rose to 65.3 per cent in the third quarter, up from 59.4 per cent in the previous quarter.
LABOUR DEMAND CONTINUES TO COOL
The number of job vacancies fell for the sixth consecutive quarter from a peak in March 2022.
Nearly one-third of all job vacancies in the third quarter were in growth sectors, including information and communications, health and social services, professional services, as well as financial and insurance services.
The labour market remained tight, with the overall number of job vacancies continuing to exceed the number of unemployed people.
The ratio of job vacancies to unemployed people was at 1.58 in September, down from 1.94 in June.
EMPLOYMENT
Total employment, excluding migrant domestic workers, rose by 23,600 in the third quarter, a smaller increase than the previous quarter. It was also the eighth consecutive quarter that total employment had increased.
Resident employment grew by 2,800 in the third quarter, a reversal of the contraction in the previous quarter. The increase was mainly in growth sectors, including health and social services, financial and insurance services, as well as professional services.
Non-resident employment continued to expand, although at a slower pace compared with previous quarters. This increase was mainly from several sectors, namely construction, administrative and support services and food and beverage services.
The construction sector has seen slowing growth since the third quarter of 2022, said MOM.
Unemployment rates remained low in October. The overall unemployment rate was 1.9 per cent, while the resident unemployment rate was 2.7 per cent and the citizen rate was 2.9 per cent.
Resident long-term unemployment rate rose from the eight-year low of 0.5 per cent in June to 0.7 per cent in September.
MOM said the rise in resident long-term unemployment rate to the pre-COVID average rate "bears close monitoring".
"While the labour market continued to expand, the pace of employment growth has slowed compared to a year ago. Economic headwinds will continue to weigh on the labour market going forward," added the ministry.
"The government encourages employers and workers to make full use of available programmes to remain competitive and resilient amidst economic uncertainty.
"We encourage employers to press on with business transformation and equip their workers for expanded or redesigned job roles. Workers are encouraged to continue to upskill and be open to new opportunities."
https://www.channelnewsasia.com/sin...d-quarter-manpower-jobs-market-report-3988776
