Vacancies remain high while unemployment remains low in Singapore: report
The post-pandemic labour market in Singapore is seeing "considerable mismatches" between jobs offered and skills available, according to Indeed.
Currently, there are around 1.6 job vacancies per unemployed person in Singapore, according to Callam Pickering, senior APAC economist from Indeed.
"Prior to the pandemic, there was typically a one-to-one ratio," he said in a webinar recently hosted by HRD and Indeed.
Singapore's unemployment rate is currently at two per cent, well below the 3.5% peak during the pandemic. Job vacancies, on the other hand, remain 62% above pre-pandemic levels despite seeing a declining trend in 2203.
"The fact that vacancies are still so very high and yet the unemployment rate hasn't dropped even low, suggests there are considerable mismatches between the jobs that are being created across Singapore right now and the skills and experience of those without work," Pickering said.
Skills mismatch in Singapore
The skills shortage is reflected in industries that have little employment gains since the pandemic, according to Indeed.
Six industries in Singapore have employment that remain below pre-pandemic levels, led by wholesale trade and admin and support services, according to Pickering.
"Now that's not because these industries are doing poorly, and it isn't because businesses in these industries don't want workers," the senior economist said.
"There's a lot of vacancies in these industries, but they're not ending up with candidates. And it does reflect the quite widespread skill and talent shortages, which have made recruitment quite challenging over the past few years.
The industry that had the biggest employment gains since the pandemic is the construction sector, accounting for one-third of employment gains since the December quarter of 2019. The next four biggest contributors include:
- Information and Communications
- Finance and Insurance Services
- Other Services
- Healthcare and Social Services
Singapore's employment is now 5.7% higher than pre-pandemic levels, equivalent to 216,000 more people with jobs, after employment grew at a "really healthy pace."
"Singapore's labour market has recovered strongly from the pandemic, and despite a more challenging economic environment, both globally and domestically, the labour market remains tight with recruitment still challenging," Pickering said.
Pickering deep dived into various factors shaping Singapore's labour market and talent landscape in this webinar. Watch it here.
