Retrenchments hit 6-year low at 11,020 in 2018

Retrenchments declined across the construction, manufacturing and services industries.

Singapore’s employment levels, excluding foreign domestic workers (FDW), cooled down by 15,600 in Q4, albeit at a slower pace compared to the previous quarter’s 16,700, according to the Ministry of Manpower (MOM). Meanwhile, in 2018, the number of layoffs recorded was 11,020 which is significantly lower than 2017’s 14,720 layoffs thanks to the economy’s continued expansion, the agency explained. It further highlighted how retrenchments declined across the construction, manufacturing and services industries which are considered as the three broadest sectors, over the year.

Employment growth mainly occurred in the services sector on the back of seasonal hiring during the quarter. On the other hand, manufacturing employment decreased in Q4, whilst construction employment remained unchanged.

In 2018, total employment excluding FDW grew by 39,300, primarily across the services industry such as community, social & personal services, financial & insurance services, professional services and information & communications. The growth amongst locals stood at 28,400 which is more than double that of foreigners at 10,900.

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Overall unemployment rate rose slightly over Q4 from 2.1% in September 2018 to 2.2% in December. “It rose from 2.9% to 3% for residents and 3% to 3.1% for citizens, after holding steady in the previous quarter,” MOM said. “However, the average unemployment rates for whole of 2018 were lower than 2017.”

“Moving forward, local workforce growth will remain modest due to the underlying demographics of an aging population and low birth rates,” MOM said. “As economic growth moderates, workers and businesses need to remain agile and responsive to economic restructuring and the evolving employment landscape.”

The agency also noted that job opportunities continue to arise in sectors such as information & communications, financial & insurance services, healthcare, professional services, wholesale trade, and built environment.