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SINGAPORE – Staff cuts more than doubled to 8,130 in the three months to the end of June, compared to the first quarter of the year, as unemployment rose further, according to published Ministry of Manpower (MOM) data on Monday (September 14).
The layoffs were much higher than the preliminary estimate of 6,700 published in July, as well as the first-quarter figure of 3,220. Second-quarter layoffs brought the total number of jobs lost to 11,350 in the first half of the year.
Layoffs in the second quarter were above the peak during the severe acute respiratory syndrome (Sars) period of 2003, but below other recessive highs, such as during the 2009 global financial crisis. Wholesale trade, product manufacturing Non-electronic and financial services posted the largest increase in layoffs.
The latest figure does not include the large-scale layoffs announced by Resorts World Sentosa in July and Singapore Airlines last week that affected thousands of workers.
Locals, who refer to Singaporeans and permanent residents (PRs), were less likely to be fired than foreigners, MOM noted in its report, although locals accounted for more than the actual number of people laid off because they comprise most of the force. labor.
The deputy general secretary of the National Congress of Trade Unions, Patrick Tay, said on Monday that the reported firing figures do not include older workers who were not re-employed, foreigners whose work passes are not renewed and workers who may have left their jobs as their employers face. imminent liquidation or insolvency.
“I expect the downsizing and unemployment figures to continue to rise in Q3 and Q4, especially with continued restricted travel, Covid-19 safe management measures and restrictions, as well as an uncertain local and global outlook and stance on general in many industries, “he said. on Facebook.
It could have been worse: The ministry said in a statement that cost-saving measures taken by companies and government support initiatives “may have cushioned the overall impact on employment.”
The number of employees assigned to shorter workweeks or temporary layoffs rose to a record high of 81,720 in the second quarter as companies battled the fallout from the Covid-19 pandemic.
The previous peak was during the global financial crisis in 2009, when 26,530 employees were in those deals.
Locals made up the bulk of the 42,190 employees in short workweeks, while foreigners made up the majority of the 43,720 with temporary layoffs, the ministry said in its labor market report.
Unemployment has risen steadily in recent months. The seasonally adjusted unemployment rate for Singaporeans rose to 4.3 percent in July, up from 4 percent in June and 3.5 percent in March.
MOM said it will start publishing unemployment rates monthly, rather than quarterly. In this way, you can detect changes in the work situation more quickly. It had started collecting unemployment data on a monthly basis since April.
The data will be available online and in employment status reports.
In July, the seasonally adjusted unemployment rate for locals increased to 4.1 percent, up from 3.8 percent in June and 3.3 percent in March, while the general rate, for locals and foreigners combined , increased to 3 percent in July. versus 2.8 percent in June and 2.4 percent in March.
The latest figures were the highest since the 2009 global financial crisis.
They come amid continued uncertainties in the global economy, including the risk of a major resurgence of Covid-19 infections, MOM said. “The weakness in the labor market is likely to persist with continued weakness in hiring and pressure on companies to withdraw,” he said.
A total of 78,800 citizens and 10,900 PR were unemployed as of June. Most of them had joined the unemployed group recently, while the number of long-term unemployed locals fell between March and June. This refers to the proportion of unemployed people who were out of work for at least 25 weeks.
Time-related underemployment increased among the locals as more part-time workers were willing and available to work additional hours.
Additionally, as a result of fewer overtime hours, the average weekly total paid hours worked per employee decreased by 1 hour between March and June, the largest quarterly decrease on record.
SOME SECTORS STILL HIRING
The economy produced 103,500 net workers in the second quarter of this year, excluding foreign domestic workers. This was the largest quarterly contraction on record, although less than the preliminary estimate of 121,800.
A spokesperson for MOM said the difference is because the final report takes into account late responses and revisions in company responses after verifications.
That’s also why the final Q2 expense reduction figure was higher than initial estimates.
In total, total employment contracted 3.7 percent, or 129,100, in the first half of the year. This comprised 66,400 foreigners, excluding maids, and 62,700 locals.
Most of the decline in local employment came from the service sector, while the decline in foreign employment was widespread across all sectors.
Contrary to trend, local employment remained stable or rose in sectors such as information and communications, financial and insurance services, health and social services, professional services, and electronics manufacturing.
Overall, food and beverage services, construction and manufacturing, excluding electronics, were the three sectors most affected by the drop in employment. On the other hand, electronics manufacturing and insurance services employed more workers in the second quarter.
Sectors where people can work remotely were less affected, MOM said.
Demand for hiring continued to decline. The seasonally adjusted vacancy to unemployed ratio in June fell to 0.57 in June, compared to 0.71 in March.
It was the worst performance in a decade, but not as low as in past recessions. For example, the ratio was 0.37 in March 2009 amid the global financial crisis.
Even so, job vacancies grew in five sectors between March and June of this year: public administration and education (6,200 vacancies as of June), administrative and support services (4,200), food and beverage services (3,200), financial services ( 4,000) and wholesalers. trade (3,800).
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