Analysts alarmed as PMET redundancies rise

Increasing under-employment is a key threat.

More white collar workers are getting the axe in Singapore. Statistics from the Ministry of Manpower show that professionals, managers, executives and technicians (PMETs) accounted for 71% of layoffs in the first quarter.

At the same time, the number of job openings fell to 50,000 in the first quarter bringing the seasonally adjusted ratio of job vacancies to unemployed persons down to 103 openings per 100 seekers in March. This marks the lowest ratio of job openings to job seekers since June 2012.

Analysts warn that the gloomy Q1 job statistics are likely to keep policymakers on their toes, particularly in light of broad-based weakness in demand for resident PMET jobs.

“Should retrenchments amongst local PMET continue to rise, we would not be surprised to see Off-Budget measures in the form of further targeted wage subsidies for PMETs (such as the existing Career Support Programme), or even tightened eligibility criteria for Employment Pass holders,” a report by Citi noted.

Meanwhile, a report by DBS noted that the increase in PMET redundancies likely highlights the problem of under-employment in Singapore.

“It is not unreasonable to assume that these professionals may have to accept lower pay and take up lower skilled jobs in order to return to the workforce. This is under-employment. It is debateable whether this is merely the effects of cyclical slowdown or a tell-tale sign of “value destruction” within the economy amid the structural transition,” noted a report from DBS.