Retrenchments in first half 2020 higher than during SARS period: MOM
SINGAPORE — Retrenchments in Singapore rose to 11,350 in the first half of this year, higher than the government’s initial estimate, and more than during the severe acute respiratory syndrome (SARS) outbreak.
There were 8,130 retrenchments in the second quarter, the Ministry of Manpower (MOM) said in its latest labour market report on Monday (14 September), higher than the initial 6,700 forecasted retrenchments between April and June.
The total of 11,350 retrenchments in the first half of this year is also higher than the 10,120 retrenchments recorded during the 2003 severe acute respiratory syndrome (SARs) outbreak, but lower than other past recessionary peaks, the MOM added.
“In addition, with the temporary stoppage or curtailment in business activities during Circuit Breaker, another 81,720 employees were placed on short work-week or temporary layoff in 2Q 2020. This likely reduced the number of retrenchments,” the ministry said.
The overall and resident – Singaporeans and permanent residents – unemployment rates were revised down from the preliminary estimate of 2.9 per cent and 3.9 per cent to 2.8 per cent and 3.8 per cent respectively.
Total employment contracted by 129,1002 in the first half of this year, the largest half-yearly reduction on record, said the MOM.
Decrease in foreign employment
Foreign employment fell by 5.7 per cent, or 66,400, more than the 2.7 per cent, or 62,700, decline in local employment, with foreign cutbacks more widespread across sectors.
There were also fewer job vacancies, down from 46,300 in March to 42,400 in June, said the MOM.
More unemployed persons continued to weigh down the seasonally adjusted ratio of job vacancies to unemployed persons – 0.57 in June – though it stayed above the lows of past recessions, it added.
However, the MOM noted, job vacancies rose in financial services, wholesale trade, food & beverage services, administrative & support services and public administration and education.
“The government continues to monitor the labour market closely and has put in place significant measures over four Budgets to support workers and help businesses to retain their employees. It has also recently announced an extension of some of these measures (e.g. Jobs Support Scheme) and other new measures to alleviate the extended economic impact of COVID-19,” it said.
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