Hi Anon,
The number of people working, excluding maids, fell by 25,600 and that is our largest quarterly contraction ever in history. While foreign workers were mainly the ones who faced the brunt of it as they contributed to most of the cutbacks, local unemployment also fell as a result of sharper, unexpected dips in headcount for trade and tourism-related industries. The figure of 25,600 drop in employment is also higher than the estimated quarterly figure of 19,900.
However, there is more bad news to come as this fall in employment is likely to increase further as it has yet to hit rock bottom, especially since circuit breaker measures only took effect in Q2. Manpower Minister Josephine Two was quoted saying that, “the full effects of Covid-19 certainly have not been felt in the first quarter."
Hence, it seems that this is not our bottom yet and the worst has yet to come. Unemployment rates for citizens rose to 3.5 per cent in March this year, from 3.3 per cent in December - according to The Straits Times. Moreover, job vacancies have also fallen as companies are cutting back on hiring.
Higher unemployment would also hurt our economy. A MAS quarterly survey has revealed that Singapore’s GDP is expected to shrink 5.8% this year and this would be our worst recession since independence.
While Government measures such as the Jobs Support Scheme will be able to provide companies and workers with some support, it is crucial to also note that support may not be immediate and some will not be able to hold it out before it arrives. We will have to prepare for greater job losses before we see the effects of the Government’s quest to create more new jobs for job seekers.
PS. Here’s a sidenote:
This part isn’t directly related to the question but for those who are curious to know beyond an answer specific to this question, here are some key macroeconomic and other indicators for 2020 and how it is expected to change moving into the Q3.
Hi Anon,
The number of people working, excluding maids, fell by 25,600 and that is our largest quarterly contraction ever in history. While foreign workers were mainly the ones who faced the brunt of it as they contributed to most of the cutbacks, local unemployment also fell as a result of sharper, unexpected dips in headcount for trade and tourism-related industries. The figure of 25,600 drop in employment is also higher than the estimated quarterly figure of 19,900.
However, there is more bad news to come as this fall in employment is likely to increase further as it has yet to hit rock bottom, especially since circuit breaker measures only took effect in Q2. Manpower Minister Josephine Two was quoted saying that, “the full effects of Covid-19 certainly have not been felt in the first quarter."
Hence, it seems that this is not our bottom yet and the worst has yet to come. Unemployment rates for citizens rose to 3.5 per cent in March this year, from 3.3 per cent in December - according to The Straits Times. Moreover, job vacancies have also fallen as companies are cutting back on hiring.
Higher unemployment would also hurt our economy. A MAS quarterly survey has revealed that Singapore’s GDP is expected to shrink 5.8% this year and this would be our worst recession since independence.
While Government measures such as the Jobs Support Scheme will be able to provide companies and workers with some support, it is crucial to also note that support may not be immediate and some will not be able to hold it out before it arrives. We will have to prepare for greater job losses before we see the effects of the Government’s quest to create more new jobs for job seekers.
PS. Here’s a sidenote:
This part isn’t directly related to the question but for those who are curious to know beyond an answer specific to this question, here are some key macroeconomic and other indicators for 2020 and how it is expected to change moving into the Q3.