Foreign Workers Leaving Due to COVID-19... Singapore's Population Declines

Total Population 5.69 Million Declines for the First Time in 10 Years
1.64 Million Lost Due to Employment Decrease
11,000 Laid Off in First Half
Q2 Unemployment Rate 2.9%, Highest in 10 Years

[Asia Economy Singapore Correspondent Seo Jumi] The population of Singapore has decreased for the first time in 10 years due to the spread of the novel coronavirus infection (COVID-19). The decline is largely attributed to the outflow of foreign workers as employment decreased.

According to local media such as The Straits Times on the 6th, the Singapore government recently announced in its population summary report that as of June, the total population was 5.69 million, showing a decline for the first time in 10 years. According to the Singapore Department of Statistics, the population last year was 5.7 million.

The biggest cause of the population decline is the reduction in employment. The non-resident population in Singapore, excluding citizens and permanent residents, decreased by 2.1% to 1.64 million during this period.

The report pointed out that "the overall decrease in labor market demand and the downturn in the service sector due to travel restrictions are the causes of the population decline."

By type of employment visa, the decrease in holders of general employment passes was particularly notable. Excluding construction workers, the proportion of migrant workers in the service sector was the highest at 21% in the first half of this year. According to the labor market report for the second quarter, Singapore's unemployment rate reached 2.9%, the highest in 10 years. Among service industries, the unemployment rate was high in the food and beverage sector. The number of layoffs in the first half of this year also exceeded 11,000, the highest since 2009. The number of workers on reduced hours and temporary layoffs in the second quarter also reached a record high of 81,720.

This downward trend is expected to continue throughout this year. The overall unemployment rate in July, the first month of the second half, was 3%, with the unemployment rate for permanent residents soaring to 4.1%, showing a trend of employment decline spreading from non-permanent residents to permanent residents. However, the number of citizens increased by 0.6% over the year until June, totaling 3.52 million.

Although the population has decreased, aging is intensifying. The population aged 65 and over accounted for 16.8% of the total, up 0.8 percentage points from last year. If the current trend continues, the proportion of elderly people is expected to rise to 26.6% by 2035. This means that a super-aged society, where more than 20% of the total population is elderly, is approaching rapidly. The Singapore government has agreed with labor and management to gradually extend the statutory retirement age from the current 62 to 65 by 2030.

The number of Singaporeans staying overseas has also decreased, with a noticeable increase in returns since the COVID-19 outbreak. Last year, 217,200 Singaporeans stayed abroad, but this number decreased to 203,500 this year. In particular, many young people aged 20 to 24 returned, suggesting a large number of students returning from studying abroad. In March, the Singapore Ministry of Foreign Affairs recommended early return for Singaporean students due to the surge in COVID-19 cases.

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