COVID-19: Impact On Singapore Labour Market More Acute In Q2

SINGAPORE, July 29 (Bernama) -- Singapore confirmed earlier warnings that the impact of COVID-19 on its labour market would be more extensive in the second quarter (Q2) of 2020 compared to the preceding quarter. "Total employment contracted further and far more acutely in the second quarter," according to the Manpower Research and Statistics Department, Ministry of Manpower (MOM), in its preliminary estimates here Wednesday. For the quarter, the department said total employment, excluding foreign domestic workers or FDWs, contracted by 121,800, more than four-fold of that in Q1 2020. “This brought the total employment decline since the start of 2020 to 147,500,” it said. All three broad sectors -- manufacturing, services and construction -- saw sharper employment contraction, said the department. Within services, the contraction was sharpest in food and beverage services, retail trade, arts, entertainment and recreation and education. Construction also saw a steep decline in employment. However, employment contraction in manufacturing was more modest in comparison. Meanwhile, the department said the overall unemployment rates rose in June 2020 to 2.9 per cent from 2.4 per cent in March 2020. However, the overall unemployment rates remained lower than previous recessionary peaks during the global financial crisis of 3.3 per cent in September 2009, and severe acute respiratory syndrome (SARS) of 4.8 per cent in September 2003. There were 90,500 unemployed residents in June 2020, of whom 79,600 were citizens, said the department. As for retrenchments, it doubled in Q2 2020 to 6,700 compared to the previous quarter's 3,220. While retrenchments had now surpassed the high during SARS (Q2 2003: 5,510), it remained below the peak observed during the global financial crisis (Q1 2009: 12,760), it said. All three broad sectors saw a rise in retrenchments over the quarter. In particular, retrenchments rose significantly in wholesale trade and transport equipment, reflecting a reduced demand in retail and air travel respectively, said the department. -- BERNAMA