Unemployment rate hits 3.3% in Q2

Employment declined in the retail and manufacturing sectors.

Singapore’s unemployment rate inched up to 3.3% in Q2 from 3.2% previously as employment growth slowed, according to the Ministry of Manpower (MOM).

Also read: Job vacancies decline after seven straight quarters of growth in Q1

The report noted that although total employment grew by 4,000 in Q2, the headline figure is lower than last quarter’s 10,700 and 6,500 from June 2018.

MOM noted that the slowing employment might mean that whilst most employers were not laying off existing workers, they are exercising greater caution in hiring even amidst unfilled vacancies.

Employment growth remained robust in Information and Communications, Professional Services, Community, Social and Personal Services and Financial Services, although the increases were offset by the employment decline in Retail Trade. As a result, employment growth in the Services sector slowed. Meanwhile, employment in Construction rose whilst employment in Manufacturing continued to contract for the third consecutive quarter, with output declining.

The number of retrenchments in Q2 declined to 2,300 from 3,230 from the previous quarter and 3,030 from Q2 2018 amidst declines in the manufacturing, construction and services sectors.