Retrenchment doubled in Singapore in the last three months
According to the latest data released by the Ministry of Manpower, Singapore (MOM), retrenchments are more than doubled to 8,130 in the three months to end-June, compared with the first quarter of the year.
The data recorded higher retrenchments as compared to the preliminary estimate of 6,700 released in July, as well as the first quarter figure of 3,220. The second-quarter layoffs brought the total number of job losses to 11,350 in the first half of the year.
The latest figure does not include the large-scale layoffs announced by Resorts World Sentosa in July and Singapore Airlines last week which affected thousands of workers.
Locals, which refer to Singaporeans and permanent residents (PRs), were less likely to be retrenched than foreigners, noted MOM in its report, though locals made up more of the actual number of people laid off because they comprise the bulk of the workforce.
National Trades Union Congress assistant secretary-general Patrick Tay shared in media, that the retrenchment figures reported do not include older workers who were not re-employed, foreigners whose work passes are not renewed and workers who may have left their jobs as their employers are facing impending liquidation or insolvency.
“I expect both retrenchment and unemployment figures to continue to increase in Q3 and Q4 especially with continued restricted travel, Covid-19 safe management measures and restrictions, as well as an overall uncertain local and global outlook and stance across many industries,” he said on Facebook.
The number of employees placed on shorter work weeks or temporary layoffs rose to an unprecedented high of 81,720 in the second quarter, as firms battled fallout from the Covid-19 pandemic.
The previous peak was during the global financial crisis in 2009, when 26,530 employees were on such arrangements.
Locals formed the bulk of the 42,190 employees on short work weeks, while foreigners were the majority of the 43,720 on temporary layoffs, said the ministry in its labour market report.
Unemployment rose steadily over the last few months. The seasonally-adjusted unemployment rate for Singaporeans climbed to 4.3 per cent in July, up from 4 per cent in June and 3.5 per cent in March.
MOM said that it will start to release unemployment rates on a monthly basis, instead of quarterly. This way, it can detect shifts in the employment situation more quickly. It had started collecting unemployment data monthly since April. The data will be available online and in the jobs situation reports.