Chart of the Day: Jobless rate rose to 2.4% in Q1

Unemployment rates could rise by the end of the year.

This chart from OCBC Bank shows that the total unemployment rate rose to 2.4% in Q1 from 2.3% in Q4 2019. Meanwhile, the resident jobless rate remained at 3.3%.

OCBC notes that the rate is expected to further climb in Q2 with the circuit breaker having begun in April. It is estimated that the total and resident unemployment rates could rise to 3% to 3.5%, and 4% to 4.5%, respectively, by the end of the year.

The unemployment rate for workers aged 40 years and above edged up to 2.8% in Q1 from 2.5% in Q4 2019, even though the long-term resident unemployment rate remained steady at 0.9%.

Many workers have also been put on shorter work weeks or even temporary no-pay leave, the latter of which was noted to be surging, according to OCBC. Around 1,537 local employees were already affected by business closures in Q1, more than double the 628 workers seen in the previous quarter, and one-third of these were from small companies with less than 25 employees.

Some 4,190 workers were also put on shorter work hours or temporary layoff in Q1 which is a fivefold jump from only 840 in the previous quarter, albeit still significantly lower than the 26,530 seen at the peak of the Global Financial Crisis.