SINGAPORE: Singapore’s labour market is likely to bottom out by the end of this year, but the recovery will be uneven, said economists.
Still, growth in the labour market may not come so soon, economists cautioned. They expect the labour market to stabilise but stay sluggish after it hits bottom. READ: COVID-19 downturn to be more prolonged than past recessions, slow recovery for jobs market: MASAnalysts expect that the labour market will rebound unevenly - or what is known as a “K-shaped” recovery. Sectors that have been resilient will continue to hire, while the rest shed their workforce.
Second quarter data from the Ministry of Manpower showed that sectors doing relatively well lost fewer jobs that those badly affected by COVID-19. Those earning S$2,999 or less made up 49 per cent - the largest percentage - of customers whose income fell by at least 10 per cent. Among this group, about one in two saw their incomes declining by more than half.
Even if demand for dining out or shopping returns at substantial levels, many workers may not get their old jobs back. Businesses might also be reluctant to hire for fear of a new round of restrictions if there is another surge in COVID-19 cases. Another wage subsidy scheme, the Jobs Growth Incentive which is aimed at encouraging firms to hire more locals started in September.