Singapore unemployment rises 2.1% as total jobs contract in Q3

It was in 1Q15 when employment last suffered contraction.

Singapore unemployment rate has seen a 0.1 percentage point increase to 2.1% in September, as total employment contracted for the first time since the 1Q15, slumping by 2,700 jobs.

According to the latest figures from Ministry of Manpower, this was primarily due to contractions in manufacturing and construction. Over the first nine months of the year, total employment grew by 14,500.

"More job seekers were taking a longer time to find work. The resident long-term unemployment rate rose from 0.6% in September 2015 to 0.8% in September 2016, the highest September rate since 2009 (0.9%). The increase was broad-based across ages and qualifications, and more pronounced among residents aged 50 & over and those with diploma & professional qualifications," MOM said.

Compared to the previous quarter, redundancies were lower, though it remained higher than a year ago. For the first nine months of the year, 13,730 workers were laid off, higher than the same period in 2015 at 10,220, and the highest since 2009's 21,210 layoffs.

"Based on Central Provident Fund (CPF) records, 49% of residents made redundant in the second quarter of 2016 re-entered employment by September 2016, edging up from June 2016 (45%), after a general downtrend since December 2014 (59%)," MOM noted.

Meanwhile, job vacancies rose slightly from 49,400 in June to 50,800 in September after declining for six consecutive quarters.

"The seasonally adjusted ratio of job vacancies to unemployed persons continued to edge lower to 91 job openings per 100 job seekers in September, from 93 in June," the manpower ministry cited.