Unemployment rate hits 2.9% in Q2

Retrenchments also jumped in Q2.

Unemployment rate widened to 2.9% in Q2 from 2.4% in Q1, according to data from the Ministry of Manpower (MoM). The resident unemployment rate likewise rose from 3.3% to 3.9%, whilst citizen unemployment inched up from 3.5% to 4% over the same period.

Also read: Jobless rate jumps to 2.4% in Q1

However, MoM stated that the unemployment rates remained lower than previous recessionary peaks during the Global Financial Crisis (GFC) and SARS. There were 90,500 unemployed residents in June, of whom 79,600 were citizens.

Retrenchments were also higher in Q2 at 6,700, compared to 3,220 in Q1. Whilst retrenchments have now surpassed the high during SARS (Q2 2003: 5,510), it remained below the peak observed in the GFC (Q1 2009: 12,760).

All three broad sectors—manufacturing, services and construction—saw a rise in retrenchments over the quarter, particularly in the wholesale trade and transport equipment segment, reflecting a reduced demand in retail and air travel respectively.

Meanwhile, Q2 total employment (excluding foreign domestic workers) contracted by 121,800, more than four-folds of that in Q1. This brought the total employment decline since the start of 2020 to 147,500.

The manufacturing, services and construction sectors saw sharper employment contraction. Within the services sector, the contraction was sharpest in the food and beverage scene, retail trade, arts, entertainment and recreation and education. The construction industry also saw a steep decline in employment, whilst employment contraction in the manufacturing sector was more modest in comparison.