Singapore’s local jobless rate at highest since 2004 as pandemic worsens lay-offs in transport and services sectors
- Advance estimates show Singaporeans bore the brunt of the job losses in the third quarter after foreigners felt the effects earlier this year
- Analysts said unemployment was likely to peak either in the third or fourth quarter but slow job growth will continue into 2021
Earlier this year, foreigners were hit harder by job losses but the figures indicate residents are no longer shielded from the impact of the pandemic, experts said.
The Ministry of Manpower on Friday reported that resident unemployment rate increased to 4.7 per cent in the third quarter, up from 3.8 per cent the previous quarter. The overall jobless rate also rose to 3.6 from 2.8 per cent, surpassing the unemployment rate at the peak of the global financial crisis in 2009 (3.3 per cent) but remaining just short of the record 4.8 per cent during the 2003 Sars epidemic.
There were 9,100 lay-offs recorded in September, up from 8,130 in June. In comparison, there were 5,510 retrenchments during the Sars epidemic in the second quarter of 2003 and 12,760 in the first quarter of 2009. Total employment, excluding foreign domestic workers, also contracted by 26,900.
“Retrenchments are expected to rise over the quarter in manufacturing and services sectors, and primarily in arts, entertainment and recreation, and air transport, which continues to be affected by Covid-19 and the need for safe management measures,” the ministry said.
“Weakness in the labour market is likely to persist as companies and workers continue to operate in an uncertain economic environment. Conditions for travel-related sectors continue to remain challenging.”