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SINGAPORE: Singapore’s unemployment rate rose to 3.6 percent in September, but the rise was slower compared to previous months, as the country reopened after a COVID-19-induced slowdown.
Even then, officials warned that labor market conditions would remain soft amid the prolonged economic recession.
Third-quarter estimates from the Ministry of Manpower (MOM) released on Friday (October 30) showed that the overall unemployment rate rose 0.2 percentage points from 3.4 percent in August, which had already exceeded the maximum recorded during the peak of the world rate. financial crisis.
The rate among Singaporeans and permanent residents increased from 4.6% in August to 4.7%, while the unemployment rate for citizens increased from 4.7% in August to 4.9%.
This brings the total number of unemployed residents to 112,500, of whom 97,700 are Singaporeans.
The pace of growth slowed in September, up 0.1-0.2 points, compared with gains of 0.3-0.4 points seen in previous months, the ministry said.
RETURNS
A total of 9,100 workers are likely to be laid off in the third quarter, surpassing previous recessive highs except for the global financial crisis, when 12,760 people were laid off in the first quarter of 2009.
The latest estimate brings the expected number of layoffs so far this year to 20,450.
MOM warned that staff reductions are forecast to increase during the quarter in the manufacturing and services sector, mainly in the arts, entertainment and recreation, and air transport, as these areas continue to be affected by the pandemic and the need for measures of safe handling.
On the other hand, there will be less job loss in construction, as activities in the sector have gradually resumed after the “circuit breaker,” the ministry said.
JOB
Employment, excluding foreign domestic workers, fell by 26,900, largely due to the number of job cuts among non-residents in the construction and manufacturing sector.
This comes after a record drop of 103,800 in the second quarter.
However, employment recovered in the service sector, mainly among health, public administration, social services and food and beverage players, MOM said. Resident employment also rebounded in the quarter.
MOM said that although there were job gains among residents as businesses resumed, the job market would remain weak.
“The weakness in the labor market is likely to persist as businesses and workers continue to operate in an uncertain economic environment. Conditions for travel-related sectors continue to be challenging,” the ministry said.
“There remains significant uncertainty about the duration and severity of the COVID-19 outbreak, as well as the recovery trajectory of the global economy,” he added.
READ: COVID-19 slowdown will be longer than past recessions, slow job market recovery: MORE
The Monetary Authority of Singapore warned on Wednesday that while the local unemployment rate is likely to bottom out later this year, it is likely to remain high in 2021 as the recovery will remain slow.
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