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SINGAPORE – The unemployment rate for residents rose 0.4 percentage points in August to 4.5 percent, a report from the Ministry of Manpower said on Wednesday (October 7).
This was slightly higher than the 0.3 percentage point increase in July, when the unemployment rate for residents was 4.1 percent.
While monthly unemployment rates so far have generally remained lower than past recessive highs, they have been gradually increasing, the MOM added.
During the severe acute respiratory syndrome (SARS) period in 2003, the rate was 6.2% in September. It was 4.9 percent during the global financial crisis of September 2009, the report noted.
Human Resources Minister Josephine Teo said: “We cannot say, at this time, whether in the next few months the unemployment rate will increase at a faster rate or stay the same.
“However, we are monitoring very closely and when the next set of figures is available, we will also share them with the public,” he told a news conference on Wednesday.
The MOM noted that the Monetary Authority of Singapore has estimated that the combined budgets Singapore implemented this year, amounting to $ 100 billion, will prevent its economy from shrinking by 5.6 percent more of GDP in 2020 and by 4 , 8 percent in 2021.
“Our economic support measures will also offset part of the increase in the resident unemployment rate by roughly 1.7 percent this year. This could mean around 155,000 jobs saved over these two years, although we will still see job losses in general, “the report said.
The MOM began providing a monthly update on last month’s unemployment rate.
In the three months to the end of June, layoffs more than doubled to 8,130 compared to the first quarter of the year at 3,220.
The second quarter decline figure was above the peak during the Sars period of 2003, but below other recessive highs, such as during the 2009 global financial crisis.
When asked if the unemployment rate could be expected to rise in the coming months as government subsidies decline, Ms Teo said: “We are watching it very closely. It is very difficult to predict the future.”
“What we can do, however, is make sure that even the opportunities that are currently available continue to be filled as quickly as possible.”
He said that while the Employment Support Plan, which provides wage subsidies to help businesses retain local workers, will eventually decline, the government has not waited until it has been completely reduced to introduce a new program in the form of Incentive for job growth.
Provides wage subsidies of 25 percent of the first $ 5,000 of gross monthly salary for each new local employee under age 40. This will double to 50 percent for each age 40 and over.
To be eligible for the scheme, companies must increase their local workforce between September and February, compared to August. They must also increase the number of local jobs that pay at least $ 1,400 in gross monthly wages.
Ms. Teo said the plan is intended to help employers promote hiring.
“What we hope to achieve … is that companies that are doubting, don’t keep doubting. And for companies that were already hiring anyway, the additional support they have gotten from the scheme basically allows them to consider incorporating even more.”
He added that there was “good interest” in the plan, although employers should be given time to draw up their workforce plans, advertise and select candidates, as the plan began last month.
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