Unemployment for Singaporeans crept up as the pace of employment growth slowed in the second quarter of this year, amid trade tensions and global uncertainties.
However, retrenchments dipped, preliminary data released by the Ministry of Manpower (MOM) yesterday showed.
MOM said the figures suggest "that most employers are not laying off existing workers but exercising greater caution in hiring, even when they have unfilled vacancies".
The unemployment rate for Singaporeans rose for the third consecutive quarter to 3.3 per cent last month, up from 3.2 per cent in March. This is after seasonal variations were taken into account. The rate for Singaporeans and permanent residents combined rose to 3.1 per cent, up from 3 per cent, while the overall unemployment rate was unchanged at 2.2 per cent.
OCBC Bank's treasury research and strategy head Selena Ling said the uptick could be due to more people entering the labour market to look for jobs in anticipation of a tougher job search ahead.
Meanwhile, layoffs fell to 2,300 in the three months from April to June, down from 3,230 in the preceding quarter and 3,030 in the second quarter of last year.
The data also showed that employment growth slowed in that period. Total employment, excluding maids, grew by 4,000, lower than the growth of 10,700 in the preceding quarter and 6,500 in the second quarter of last year.
Last quarter's job gains were mainly in sectors like information and communications, professional services, financial services, and community, social and personal services. But these were offset by the decline in employment in retail trade.
Construction continued to add workers, with more public sector construction activities. Employment growth turned positive for the sector just this year, after 11 consecutive quarters of contraction.
But manufacturing continued to shed workers for the third consecutive quarter as output declined.
Figures by the Economic Development Board yesterday showed that factory output slumped 6.9 per cent in June from a year ago.
Manpower Minister Josephine Teo said in a Facebook post that her ministry is "monitoring the labour market closely".
She noted that while employment growth slowed, it did not stall. "When hiring becomes more subdued, being flexible helps job seekers greatly. This is especially so if their previous roles or industries have restructured," she said.
Job seekers may find opportunities in sectors and occupations they have no prior experience or interest in, she added. "There are programmes to support them, such as the more than 100 professional conversion programmes in over 30 sectors," she said.
Speaking to reporters at an event at Nanyang Polytechnic yesterday, Mrs Teo also highlighted the work of the Taskforce for Responsible Retrenchment and Employment Facilitation, which is notified of layoffs at companies. It offers laid-off workers support, such as by linking them up with training or help in writing resumes.
National Trades Union Congress assistant secretary-general Patrick Tay urged companies to look to the tripartite guidelines on managing excess manpower and "cut costs to save jobs instead of cutting jobs to save costs".
Economists said the labour market could soften further. DBS' Mr Irvin Seah said that with growth slowing, the economy's ability to create new jobs will moderate. Maybank Kim Eng's Mr Chua Hak Bin and Ms Lee Ju Ye expect employment growth "will likely grind lower to near zero in the third quarter".
• Additional reporting by Cara Wong
