Singapore expects spike in job losses as coronavirus pandemic hits demand and economists predict ‘darkest year’ ahead
- Government policies to safeguard jobs could see retrenchments affecting foreigners more, leading to knock-on effects on the rental market
- Singapore is bracing for a deeper-than-expected recession with people saving instead of spending even after circuit-breaker measures are lifted
Senior economist Irvin Seah of DBS Bank, the city state’s largest bank, said in a research note on Monday that export-reliant Singapore, whose economy is a bellwether for the health of global trade, would experience its “darkest year … since independence”.
The overall seasonally adjusted unemployment rate rose to 2.4 per cent in March, up from the 2.3 per cent in December, according to figures released by the Ministry of Manpower (MOM). This figure is below the record-high 4.8 per cent unemployment reported in 2003, just after the severe acute respiratory syndrome (Sars) epidemic, and the 3.3 per cent during the 2009 global financial crisis.
The ministry reported that the jobless rate for Singaporeans crept up to 3.5 per cent from 3.3 per cent, while the rate for residents rose to 3.3 per cent, from 3.2 per cent.