Despite a decreasing rate of growth, Singapore's labor market continues to tighten, with job openings reaching a record high in the first quarter of this year.
This is in response to the fact that certain companies are posting job openings to fill vacancies and to meet increased demand.
The number of job openings increased from 117,100 in December to 128.100 in March, according to a report on the labor market issued by the Ministry of Manpower (MOM) on Friday (June 17).
Additionally, the ratio of job openings to unemployed persons increased to 2.42, or more than two available employment for each unemployed person.
MOM attributed this gain, the greatest since 1998, to "a decrease in unemployment and an increase in job openings."
The pace of growth, at 9%, is less than the previous quarter's surge of 17%, according to the ministry.
In addition, the majority of openings were in the construction and manufacturing industries, mostly for non-professional, management, executive, and technical (non-PMET) positions that are frequently filled by migrant workers.
PMET positions in the financial services, information and communications, public administration and education, and professional services sectors have also contributed to the increase in job openings.
In the meanwhile, resident employment, which includes Singaporeans and permanent residents, surpassed pre-pandemic levels, according to MOM. It was 3.9% greater compared to December 2019.
Excluding migrant domestic workers, overall employment climbed by 42,000 in the first quarter of this year, somewhat less than the previous quarter's gain of 47,900.
Non-resident employees comprised the majority of Singapore's employment growth.
This, according to MOL, is a result of the gradual easing of border restrictions and firms filling a backlog of openings for jobs that are more dependent on migrant labor.
In March, non-resident employment remained 15% below pre-pandemic levels.
For resident employment, sector developments were mixed.
MOM said that resident employment in growing industries such as financial services, technology and communications, professional services, and health and social services continued to increase.
"However, it decreased in consumer-facing industries, primarily due to the seasonal trend of temporary workers employed for end-of-year celebrations departing the following quarter."
The unemployment rate for residents also decreased somewhat in April, falling from 3.2% to 3.1%.
The rate for permanent residents and the total labor force remained at pre-pandemic levels, at 3% and 2.2%, respectively.
From December 2021 to March of this year, the resident long-term unemployment rate improved to 0.8% from 1%, although remained somewhat higher than the pre-Covid-19 quarterly average of 0.7% in 2018 and 2019.
The number of layoffs reached a record low of 1,320 in the first quarter.
In April, MOM's preliminary data for the first quarter revealed this record low, which corresponds to six layoffs for every 10,000 employees.
The percentage of retrenched people who regained employment within six months of their layoff increased to 72%, a level not seen since 2015.
"As company activity restarted and labor shortages increased, fewer employees were placed on a reduced workweek or temporary layoff," said MOM.
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However, the Ministry of Finance noted that the deterioration of the external economic climate, in part owing to the Russia-Ukraine conflict, has dampened the forecast for demand in several export-oriented industries.
"This may dampen labor demand moving forward," the report warned. As a result, organizations must continue with reorganization and transformation to preserve competitiveness.
In a Facebook post, Manpower Minister Tan See Leng stated, "With the lifting of border restrictions, we anticipate that the influx of non-resident employees will continue to rise, which will assist to reduce the labor market's tightness in the coming months.
"At the same time, the government will continue to assist businesses in enhancing the skills of their local labor force in order to assist them in adapting to new development sectors and meeting labor demand."
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