Unemployment rate broadened to 2.4% in Q1

Total employment dropped to an all-time low since the SARS outbreak.

The overall unemployment rate rose to 2.4% in Q1 from 2.3% in Q4 2019, according to data from the Ministry of Manpower (MOM). Resident and citizen unemployment rate likewise widened to 3.3% and 3.5%, respectively, over the same period.

Similarly, overall retrenchments jumped to 3,000 from 2,670 in the previous quarter. “With jobs and wage support measures announced in Budgets, and companies encouraged to retain workers and retrench only as a last resort, layoffs did not see a sharp increase in this first quarter,” the report said.

On the other hand, total employment fell 19,900 QoQ in Q1, no thanks to a reduction in foreign employment. MOM stated that this is the sharpest quarterly contraction since SARS. The increase in retrenchments and decline in employment was led by the consumer-facing retail trade and food & beverage services, tourism-dependent accommodation and manufacturing and construction industries.

However, the report added that contractions in wholesale & retail trade, food & beverage services and accommodation hiring were offset by rising demand in healthcare, public administration and professional services.

MOM stated that these figures remain below the highs seen during SARS and the Global Financial Crisis (GFC). “However, labour market conditions are likely to worsen in the upcoming quarter, given the sharp fall in demand globally as well as in Singapore as firms adjust to circuit breaker measures,” the report added.