Retrenchments down after three quarters of increases, unemployment rates remain low: MOM

MODERATION IN GROWTH

Total employment excluding migrant domestic workers expanded for the seventh consecutive quarter, although growth had “moderated significantly” compared to the preceding quarter, MOM said.

The number of jobs grew by 23,700 in the second quarter, lower than the increase of 33,000 seen in the first quarter.

MOM said that total employment growth in the second quarter “came solely from non-residents, although this has also eased from past quarters, with a broad-based slowdown in non-resident growth across sectors”.

Non-resident employment growth was mainly in construction, amid “sustained demand for both public and private sector projects, such as housing”, the ministry said.

Resident employment change, meanwhile, contracted for the first time since the second quarter of 2020.

Seasonal declines were observed in food and beverage (F&B) services and retail trade, MOM said.

“Resident employment grew in other sectors, mainly in community, social and personal services, financial services and professional services, although growth has moderated.”

The ministry said that the declines in F&B and retail during this period were “not unusual”.

“F&B and retail outlets usually increase their hiring of temporary staff in the fourth quarter to cater for year-end festivities, and reduce their number of staff in subsequent quarters, as consumer demand eases,” MOM said.

The resident employment level is, however, still above its pre-pandemic level in 2019, it added.

Unemployment rates remained low, although they rose slightly in April and May before remaining unchanged between May and June.

Preliminary figures showed that the unemployment rates in June were 2.8 per cent for citizens, 2.7 per cent for residents and 1.9 per cent overall.

“Over the quarter, the number of unemployed residents rose from 62,200 in March 2023 to 64,600 in June 2023,” MOM said.