Border restrictions are holding back what’s supposed to be a recovering labour market
Resident employment in Singapore increased in the third quarter, according to the latest Labour Market Report. However, total employment declined amid a dipping non-resident employment.
"Resident employment grew by 19,100, leading to a significantly smaller decline in total employment," which decreased only by 2,400, read the report from the Ministry of Manpower (MOM).
The decrease is attributed to the ongoing border restrictions that dropped non-resident employment, which plunged by 21,500, a pace MOM said is similar to the second quarter of 2021.
According to the report, the sectors of Information & Communications, Professional Services and Financial Services, Administrative & Support Services, and Health & Social Services led the growth of resident employment. However, it added that "consumer and tourism-related sectors such as Food & Beverage Services, Arts, Entertainment & Recreation, Accommodation, and Retail Trade continued to trail behind the other sectors."
Unemployment, retrenchment
Meanwhile, the report said there was an "easing" in unemployment rates and retrenchments, with a fewer number of workers placed on short work weeks and temporary layoffs. According to MOM, the overall unemployment rate was at 2.6%, while the number and incidence of retrenchments dipped to 1.3 retrenched per 1,000 employees.
"There were fewer employees who were placed on short work-week or temporary layoff in 3Q 2021 (4,060) compared to 2Q (5,580), though the number remained above pre-pandemic levels," the study also noted.
Read more: Singapore's employment rate rises to pre-COVID levels, according to Ministry of Manpower
Job vacancies, on the other hand, was also hit by border restrictions and increased to 98,700 in September.
"There were 209 job vacancies for every 100 unemployed persons in September 2021, up from 163 in June 2021 (seasonally adjusted)," the report said. It added that in-demand occupations are Software, Web & Multimedia Developers, Systems Analysts, Commercial & Marketing Sales Executives, Accountants, and Nurses.
The report concluded that while the labour market is expected to continue recovering until 2022, it will be uneven as it becomes tighter due to border restrictions.
"The Government and our tripartite partners will continue to support employers to accelerate the pace of transformation, become more manpower-lean and strengthen their local workforce," it said.
