SINGAPORE: Singapore's total employment in the first quarter saw its sharpest drop since the severe acute respiratory syndrome (SARS) outbreak in 2003, according to preliminary estimates released on Wednesday (Apr 29).
Total employment, excluding foreign domestic workers, contracted by 19,900 in the January to March period. This was due to a significant reduction in foreign employment, said the Ministry of Manpower said in its quarterly update on the labour market.
AdvertisementAdvertisementDuring the SARS outbreak, total employment fell by 24,000 in the second quarter of 2003.
The first-quarter figures reflect the early impact of COVID-19, the ministry said.
[h=3]READ: Singapore will enter a recession this year, ‘significant uncertainty’ over duration and intensity: MAS[/h][h=3]READ: MAS expects more job losses, wage cuts as economy deals with ‘large, abrupt shock’ from COVID-19[/h] AdvertisementAdvertisementThe manufacturing, construction and services industries saw contractions in employment, with services experiencing the sharpest decline due to the COVID-19 outbreak.
Within the services industry, the food and beverage services, retail trade and accommodation sectors were the most severely affected.
Still, overall local employment grew at a "modest pace", the ministry said, with contractions in wholesale and retail trade, F&B and accommodation offset by increases in healthcare, public administration and professional services.
"However, workers who remain in employment may have experienced reductions in working hours or adjustments in their salaries," said the ministry.
[h=3]READ: Singapore's economy contracts by 2.2% in Q1 as COVID-19 outbreak hits construction, services sectors[/h][h=3]READ: Circuit breaker rules to incur more pain for Singapore economy, job market - Experts[/h]UNEMPLOYMENT RATE RISES
Although the unemployment rate rose, it remains lower than the highs seen during the SARS period as well as the global financial crisis, said the Manpower Ministry.
The overall unemployment rate rose over the quarter in March from 2.3 to 2.4 per cent. Among Singapore citizens, the unemployment rate rose from 3.3 to 3.5 per cent, and among residents, rose from 3.2 to 3.3 per cent.
During SARS, the overall unemployment rate was 4.8 per cent in September 2003; during the global financial crisis, the rate was 3.3 per cent in September 2009.
A total of 3,000 workers were retrenched in the first quarter, up from 2,670 in the previous quarter, but significantly lower than the 12,760 in the first quarter of 2009 during the global financial crisis.
“With jobs and wage support measures announced in Budgets, and companies encouraged to retain workers and retrench only as a last resort, layoffs did not see a sharp increase in this first quarter,” said the ministry.
Retrenchments rose in the services industry, mainly in retail trade and F&B services, due to the drop in domestic consumption when safe distancing measures were implemented. The tourism-dependent accommodation sector also saw more retrenchments amid a drop in visitor arrivals.
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