Singapore’s employment growth slows in Q1

Jobless rate hit 2.1%.

Singapore’s labour market continued to expand albeit at a slower pace in the first quarter as demand for jobs cooled down and retrenchments in companies persisted, the Ministry of Manpower (MOM) reported. 

Advanced estimates from the MOM showed that total employment grew by 4,900 last quarter, slower than the 7,500 increase in the fourth quarter.  This was largely due to higher resident employment in financial services, health and social services, as well as public administration and education.

There were about 3,000 retrenchments last quarter, down from 3,460 previously, as many businesses press on with reorganisations and restructuring efforts. This contributed to rising unemployment in the city-state.

MOM reported that the overall jobless rate rose by 2.1% in the first quarter, although they see this easing in the near term due to the tight labour market.

As job demand tends to lag economic growth, MOM said employment rates will likely follow the anticipated recovery of the domestic economy later this year.

The agency’s polls showed hiring demand is already starting to pick up with more than half of companies expressing interest to hire in the next three months, although wage growth could slow as fewer companies were planning to roll out salary increases.

“With slowing resident workforce growth and low resident unemployment rates, it will be less likely for resident workforce growth to sustain our economic growth. Instead, MOM, together with economic agencies, will help our businesses press on with transformation to become more manpower-lean and productive, generating better jobs for Singaporeans in the workforce and resources for national development,” MOM said.

“To achieve this, it is imperative that Singapore continues to attract highly-skilled foreign workers that complement our resident workforce and help our businesses and economy to compete and to thrive,” it added.