Reflecting the tugs and pulls of a changing economy, total employment grew in the third quarter this year but the unemployment rate also crept up.
This indicated that while more jobs were being created, some residents might be struggling to find employment as they still lacked the skills needed for the new jobs.
"The jobs and skills mismatch will not go away. In fact we must expect it," said Manpower Minister Josephine Teo at a media briefing ahead of yesterday's report from her ministry.
Employers might be hiring more cautiously, a ministry statement said.
Total employment, excluding foreign domestic workers (FDWs), grew by a revised 21,700 between July and September - more than three times the job growth of 6,200 in the preceding quarter.
The seasonally adjusted unemployment rate rose to 2.3 per cent, up from 2.2 per cent in the April to June quarter.
Worryingly, there were fewer job vacancies available than the number of unemployed people chasing jobs. This ratio fell to 0.83 in September, indicating that there were around eight vacancies for every 10 unemployed people.
Mrs Teo said the number of job vacancies is an indicator that the confidence is still not so strong, and she would be cautious about the labour market.
Overall, though, there was reason to cheer.
The higher employment growth suggested that there was still some resilience in the labour market because it was growing despite economic headwinds, she added.
The report noted that total employment growth, excluding FDWs, between January and September stood at 38,600, the highest in five years, reflecting a rebound in the construction sector.
The construction sector alone added 5,400 workers in the third quarter, when it had shed 300 a year earlier.
The service sector added the most jobs - 15,300 - in the third quarter. Modern services, including finance, insurance and professional services, accounted for many of them. There was also a spike in workers hired in the health and social services sector.
In contrast, the retail trade sector shed 1,200 jobs.
The report also noted that the unemployment rate crept up and there were 74,200 residents, of which 64,600 were Singaporeans, unemployed in September.
Many of those unemployed were either aged below 30 or above 50.
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21,700
Growth in total employment, excluding foreign domestic workers, between July and September - more than three times the job growth of 6,200 in the preceding quarter.
2.3%
Seasonally adjusted unemployment rate, up from 2.2 per cent in the April to June quarter.
The unemployment rate for residents with below secondary school qualifications continued to increase, as employment growth was concentrated in higher-skilled sectors, the report noted.
Commentating on the changing landscape, Associate Professor Lawrence Loh of the National University of Singapore Business School said digital transformation cuts both ways.
"On the one hand, it creates new opportunities and hence employment growth," he said. "On the other, it may require workers who can be ready for the change - this may affect people looking for work or even existing workers who need the new skills."
The report said the number of job vacancies continued to decline - from 47,700 in June to 42,200 in September.
Meanwhile, the number of retrenchments between July and September (2,430) was slightly higher than the previous quarter's (2,320).
"Restructuring and reorganisation remained the top reason cited by establishments for retrenchments, although the percentage that cited downturn in the industry also increased," the report said.
