Singapore: Unemployment could tick higher in H2 2020 – UOB

Economist Barnabas Gan at UOB Group reviewed the latest labour market report in Singapore.

Key Quotes

“Singapore’s unemployment rate expectedly rose to 2.9% in the second quarter of 2020, according to the provisional data by the Ministry of Manpower. This marks the highest unemployment rate over a decade ago.”

“All three major industries, specifically manufacturing, construction and services, saw reduced employment in 2Q20.”

“We continue to pencil unemployment rate to edge higher to 3.5% in 2H20. Singapore’s labour market is still expected to soften further into 2H20, given the economic recession. Given the slowdown, companies may continue to show reluctance in hiring while the pressure to retrench their existing workforce could also increase.”

“Nonetheless, government-led efforts to support Singapore’s labour market could partially mitigate the rise in unemployment rate. These include the Job Support Scheme (JSS) to provide wage support for citizens, coupled with other numerous initiatives and programmes to help job-seekers and mid-career individuals.”