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Singapore’s total employment growth hits record level in 2022 on return of foreign workers
SINGAPORE’S total employment growth was at an all-time high in 2022, driven largely by the return of foreign workers following the relaxation of border controls in the first half of the year, the Labour Market Report indicated on Wednesday (Mar 15).
Total employment grew by an unprecedented 227,800 last year, reaching 2.9 per cent above its pre-pandemic level in 2019.
Non-resident employment constituted 88 per cent, amounting to 201,600, of the increase – this is 0.8 percentage points lower than 2019 levels.
The Ministry of Manpower (MOM) said the increase was primarily due to the hiring of work permit holders in sectors such as construction and manufacturing.
Resident employment increased by 26,300 in 2022, surpassing 2019 levels by 4.8 per cent. The increase was mostly in outward-oriented sectors such as financial services as well as information and communications, said MOM.
Annual average unemployment rates fell further in 2022, compared to the year before. Overall unemployment fell to 2.1 per cent, from 2.7 per cent; resident unemployment was down to 2.9 per cent, from 3.5 per cent; citizen unemployment was at 3 per cent, down from 3.7 per cent.
Resident long-term unemployment also inched up to 0.6 per cent, from the pre-pandemic average of 0.7 per cent.
Retrenchments in the fourth quarter more than doubled to 2,990, from 1,300 in the previous quarter. Still, total retrenchments in 2022, at 6,440, were lower than pre-pandemic levels.
The bulk of these retrenchments were in the electronics and manufacturing industries, followed by wholesale trade and information and communication.
Business restructuring was the top reason, MOM said.
The percentage of retrenched residents who found employment within six months increased to 73.1 per cent in Q4, the highest since Q2 2015. Most of them joined a different industry from the one they were laid off from, MOM added.
MOM is expecting global economic headwinds and slower growth to weigh on labour demand, even if hiring sentiments in December 2022 remained positive.
This is even as aviation and tourism-related sectors are expected to continue to benefit from the recovery in air travel and inbound tourism, boosted by the relaxation of China’s border restrictions.
Employment growth is likely to ease from last year’s increase and be uneven across sectors, MOM said.
Source: https://www.businesstimes.com.sg/singapore/singapores-total-employment-growth-hits-record-level-2022-return-foreign-workers