The unemployment rate is increasing but at a slower pace compared to previous months: MOM

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Singapore: The country’s unemployment rate rose to 3.6 percent in September, but at a slower pace compared to previous months, as it rebounded after the Covid-19-induced drop.

According to a statement from the Ministry of Manpower (MOM) with estimates for the third quarter, 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 global 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.

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A total of 9,100 workers are likely to be laid off in the third quarter. The latest estimate brings the expected number of layoffs this year to 20,450, of which 57 percent are residents.

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.

However, employment rebounded in the service sector, mainly among community, social and personal services, such as health and public administration, and food and beverage players.

Resident employment also rebounded in the third quarter to nearly pre-Covid-19 levels, from 2.29 million in June to 2.34 million in September. It was 2.36 million at the end of last year.

At a press conference on Friday (October 30), Human Resources Minister Josephine Teo said it is “very encouraging” that local employment has managed to grow.

“(The) collective efforts of employers and employees, the resumption of activities, in addition to the adequacy of work, I think all this contributed to the expansion of employment among the locals,” he said.

And although the unemployment rate rose, he added that the fact that employment also grew offers “some hope.”

“It means that people are joining the search, but also people are getting the job,” he said.

However, Ms Teo cautioned against the assumption that the rebound in local employment would continue into the future.

According to channelnewsasia.com on Friday (October 30), the ministry also said that although there were employment gains among residents as businesses resumed, the job market will remain weak.

“The weakness in the labor market is likely to persist as companies and workers continue to operate in an uncertain economic environment. Conditions for the travel-related sectors continue to be challenging, ”he said.

“There remains significant uncertainty about the duration and severity of the Covid-19 outbreak, as well as the recovery trajectory of the world economy,” he added. / ITGS

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