Risk of slowdown may dampen Singapore job market

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The cautious note struck departs from the ministry’s optimism when releasing July’s figures on Sept 9.

Monthly figures for August, which were released by the Ministry of Manpower last Friday, showed there were 57,600 unemployed Singaporeans in August, almost 4,000 fewer than July’s 61,500.Resident unemployment, comprising permanent residents and Singaporeans, clocked in at 64,800, compared with 68,900 in July.

The overall unemployment rate, at 1.9% and that for residents, at 2.7%, both posted a 0.2 percentage point decline from July too. But the ministry added: “While unemployment rates are currently lower than pre-pandemic levels, the increased risk of a slowdown amid contraction of manufacturing activity, soaring inflation and interest rate hikes could dampen labour market activity.”

Human resources expert Mayank Parekh said sectors that are more at risk of dampened labour demand include financial services, wholesale trade between businesses, and manufacturing. “This current uncertainty is causing firms to slow down or put on hold their hiring plans,” said Parekh, who was previously chief executive of the Institute for Human Resource Professionals. — The Straits Times/ANN

 

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