Singapore employment returns to pre-Covid levels, layoffs surge in fourth quarter of 2022
Retrenchments in Singapore more than doubled in the fourth quarter of 2022, following record lows in the previous three quarters, while total employment rose to 2.9 per cent above pre-pandemic levels, according to latest annual labour market data released on Wednesday.
Residents accounted for 63 per cent of the 2,990 lay-offs in the fourth quarter. Most of these residents worked in wholesale trade, electronics manufacturing and information and communications, which are "outward-oriented sectors facing global headwinds", the manpower ministry said.
Total lay-offs for the year, led by business restructuring and reorganisation, were lower than pre-pandemic levels, with 6,440 in 2022 compared to 10,690 in 2019.
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Job vacancies in December declined for a third quarter in a row, partly as non-resident employment has not yet recovered to pre-pandemic levels.
"To tap on a broader pool of manpower, employers can offer flexible work arrangements and redesign jobs to entice more residents outside the labour force, such as women with caregiving responsibilities and seniors, back into employment," the ministry said.
But there was some upside for resident workers in the city state. Overall prospects of finding new jobs remained positive for retrenched workers, with 73.1 per cent of these workers landing a new job within six months of getting laid off in the fourth quarter of last year, the highest since 73.6 per cent in the second quarter of 2015.
Hiring sentiment "remained positive" as forward-looking data revealed that most firms, in December, planned to hire more employees in the next three months.
Total employment that increased to 2.9 per cent above pre-pandemic levels, by around 227,800 jobs, was the largest increase since the previous high in 2007 when it rose by 223,500.
This is largely driven by the increased hiring of work permit holders in sectors like construction and manufacturing, as employers started to backfill positions left empty by non-residents during the height of the pandemic.
"Global economic headwinds and slower growth may weigh on labour demand going forward, although hiring sentiments in December 2022 remain positive. Employment growth is likely to ease from 2022's increase and be uneven across sectors," MOM said.
Aviation and tourism-related sectors are also expected to benefit from the recovery of air travel and inbound tourism, which will see a further boost with China's relaxation of border restrictions, the manpower ministry added.
But retrenchments are likely to continue rising in the first quarter, as manufacturing and trade-related services continue to contract and tech firms remain in the midst of restructuring and downsizing, said Chua Hak Bin, an economist at Maybank Investment Banking Group.
Chua said he expected overall employment to continue growing this quarter, led by sectors like hospitality and aviation. But he expects employment to slow to around 25,000, lower than the 43,500 in the fourth quarter of last year.
This article originally appeared on the South China Morning Post (SCMP).
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