13,730 workers in Singapore laid off, highest since 2009
SINGAPORE: A total of 13,730 workers were laid off in the first nine months of 2016 in Singapore, the highest since 2009 of 21,210, said the Ministry of Manpower ( MOM) in the ‘ Labour Market Third Quarter 2016 Report’.
MOM said 4,220 workers were made redundant in the third quarter of 2016, lower than the past quarter of 4,800, but higher than a year ago of 3,460 employees.
For the quarter under review, redundancies fell in the manufacturing and services sectors but edged up in the construction industry, it said.
Professionals, managers, executives and technicians were more likely to be made redundant, said the report, adding that this group formed the majority or 73 per cent of residents made redundant in the third quarter of 2016, higher than their workforce representation.
However, MOM noted that reentry rates had risen.
Based on the Central Provident Fund records, 49 per cent of the residents made redundant in the second quarter of 2016, were reemployed by September 2016, edging up from June 2016 (45 per cent) after a general downtrend since December 2014 (59 per cent).
On job vacancies, MOM said after declining for six consecutive quarters, the seasonally adjusted number of job vacancies rose slightly to 50,800 in September 2016 from 49,400 in June 2016 but remained lower than the same period last year of 56,500.
Job seekers continued to outnumber job vacancies for the second consecutive quarter, said the ministry.
On unemployment, an estimated 66,600 residents, including 58,500 Singapore citizens, were unemployed in September, down from June 2016 (residents: 68,400; citizens: 60,200).
The Ministry of Manpower also revealed that more job seekers were taking a longer time to find work.
The resident long- term unemployment rate rose to 0.8 per cent in September 2016 from 0.6 per cent in September 2015, the highest September rate since 2009 (0.9 per cent).
Long-term unemployed formed 30 per cent of the unemployed residents, up from 23 per cent a year ago, and the highest observed for a September period since 2002 (33 per cent).
The rise in long-term unemployment rate was broad-based across ages and qualifications with larger increases for residents aged 50 and over (0.6 per cent to 1.0 per cent) and those with diploma and professional qualifications (0.4 per cent to 0.8 per cent), which reached their highest September rates since 2009.
On employment, cumulatively in the first nine months of 2016, total employment grew by 14,500, the lowest growth since 2009.
Amid a slowdown in private construction activities, the sector saw 5,300 fewer workers in the third quarter of 2016.
Cumulatively in the first nine months of 2016, the industry saw employment losses of 3,200, in contrast to the growth in the same period last year (7,700).
Total employment contracted in the manufacturing sector for the eighth consecutive quarter in the third quarter of 2016 (- 3,600), bringing the decline over the first nine months of 2016 to 8,900.
The subdued labour market performance for the sector was likely to extend into the fourth quarter of 2016 as manufacturing firms were expected to hire fewer workers, especially for transport and precision engineering, said the ministry.
The contraction in total employment, heightened redundancy levels and decline in job vacancies to unemployed ratio, reflected the current subdued global economic conditions and ongoing economic restructuring.
“Along with efforts to transform our industries and create quality jobs for our people, the tripartite partners will continue to step up help for workers affected by the economic situation to seize new job opportunities through ‘SkillsFuture’ and Adapt & Grow’ initiatives amid the ongoing economic transition,” said MOM. — Bernama