120,000 Jobs Disappear in Singapore... Unemployment Rate Hits 10-Year High

2020 Labor Market Report... Sharp Increase in Q1 Decline from Around 20,000
COVID-19 Impact on Food Service and Construction Industries

[Asia Economy Singapore Correspondent Seo Jumi] Singapore, whose gross domestic product (GDP) plummeted in the second quarter of this year due to the novel coronavirus disease (COVID-19) crisis, could not avoid a massive unemployment crisis. The unemployment rate in the same quarter recorded the highest figure in 10 years.

According to local media such as The Straits Times on the 1st, the Singapore Ministry of Manpower recently announced in the '2020 Q2 Labour Market Report' that the unemployment rate reached 2.9%, the highest in 10 years. The reduction in employed workforce excluding foreign workers sharply increased from 25,600 in Q1 to 121,800 in Q2. In particular, due to the COVID-19 crisis, sectors with many on-site jobs suffered greatly, with low-wage, elderly, and mid-career workers being representative groups. The unemployment rate for Singapore citizens excluding migrant workers rose to 4%. However, the Ministry of Manpower added that this level is lower than during the 2009 global financial crisis.

The industry group with the largest employment decline was the service sector, especially the food and beverage industry. Employment also sharply decreased in retail, leisure, travel, education, and construction. The unemployment trend in manufacturing was relatively moderate compared to other industries. On the other hand, employment in public administration and education, as well as financial services, increased by more than 2,000 each.

Because of this, the need for government-led job creation is increasing in Singapore. Recently, the Singapore Ministry of Health announced plans to expand the healthcare workforce by over 9,000 personnel to respond to the epidemic situation. Accordingly, by the end of next year, 7,500 jobs in the medical field and 1,600 jobs combined with technical training will be created. The government’s employment support scheme, which partially covers workers’ wages, will also be extended until March next year. The government will cover up to 50% of wages not only for Singapore citizens but also for permanent residents. Additionally, a budget of 1 billion Singapore dollars has been allocated to promote wage support benefits for companies contributing to employment. When companies newly hire workers under 40 years old, the government subsidizes 25% of their wages, and for workers aged 40 and above, 50% of their wages.

The Singapore government is also actively attracting global companies to create new jobs. Recently, it secured a data center for Zoom, a video conferencing solution company that has rapidly risen after the COVID-19 crisis. This company operates 18 data centers worldwide, and this is the first time it has established one in Southeast Asia. Singapore’s GDP fell by 13.2% year-on-year in Q2 due to strict lockdown measures and the global economic downturn. The economic outlook for this year has also been revised downward to -7%.

This content was produced with the assistance of AI translation services.