SINGAPORE, Oct 7 — The unemployment rate for citizens and permanent residents (PRs) rose at a slightly faster pace in August than the month before, Manpower Minister Josephine Teo said, warning that it remains to be seen if joblessness will rise more quickly in the coming months.

The Ministry of Manpower’s (MOM) eighth weekly job situation report released on Wednesday (Oct 7) showed that the unemployment rate for residents — citizens and PRs — climbed 0.4 percentage points in August to 4.5 per cent, the highest since September 2009 (4.9 per cent) in the aftermath of the global financial crisis. 

The climb is a touch steeper than in July, when the resident jobless rate rose by 0.3 percentage points to 4.1 per cent. 

Teo briefed the media on the report before she toured construction firm Samwoh Corporation’s laboratory facilities with Deputy Prime Minister Heng Swee Keat and Trade and Industry Minister Chan Chun Sing. 

Singapore’s overall unemployment rate, which covers citizens and PRs as well as foreigners living in households here, stood at 3.4 per cent in August.

This is higher than the peak of 3.3 per cent recorded in the wake of the financial downturn in September 2009, but lower than the 4.8 per cent jobless rate in September 2003 in the aftermath of the severe acute respiratory syndrome outbreak. 

Historically, the labour market has tended to lag economic performance by two or three quarters.

In July, the overall unemployment rate was 3 per cent. 

Between July and August, the jobless rate for citizens also increased from 4.3 per cent to 4.6 per cent — the highest since September 2009 (4.9 per cent). 

Teo said: “We cannot tell at this point in time whether, in the coming months, the unemployment rate will (rise) at a faster rate or will it stay about the same, but nonetheless we are keeping a very close watch.” 

The manpower minister was asked whether the resident employment rate could rise further when government initiatives such as the Jobs Support Scheme (JSS) come to an end. 

The government announced in August that the JSS, which provides employers with wage support to retain Singapore employees, would be extended by up to seven months. 

In response, the minister reiterated that it was hard to foretell the future. 

“What we can do, however, is to make sure that even the opportunities that are currently available, they continue to be filled as quickly as possible,” she said. 

Unfilled vacancies

MOM’s latest job situation report showed that there remains a significant number of unfilled vacancies under the SGUnited Jobs and Skills Package.

The S$2 billion package announced in May aimed to create close to 100,000 opportunities for workers, including jobs, traineeships and skills training opportunities.

Even though the government has surpassed this target — there were 117,500 opportunities at the end of August — only 33,100 jobseekers have been placed into openings under the scheme so far. 

Based on ground feedback, MOM said that there continues to be mismatches in expectations and skills. 

On the one hand, some jobseekers are hesitant about moving into unfamiliar roles. Employers, on the other, are still getting used to looking  beyond candidates with backgrounds that are an exact match for jobs. 

The ministry urged employers to focus on candidates’ transferrable skills and tap government funding to bridge the skills gaps.

The following is a round-up of the opportunities available under the SGUnited Jobs and Skills Package: 

Tops sectors with opportunities

Information and communications: 19,860 opportunities 

Healthcare: 9,240

Professional services:  7,610

Finance and insurance: 6,200 

Manufacturing: 6,070

Sectors with most jobseekers matched with opportunities 

Information and communications: 2,650

Food Services: 1,680

Professional Services: 1,420

Healthcare: 1,180

Finance and insurance: 1,160

Opportunities under the scheme

At the end of August, there were 117,500 opportunities under the scheme. This is a near 30 per cent jump from the 92,000 opportunities available at the end of July.

About 71,400 government-funded opportunities or public sector jobs:

Long-term jobs: 22,690

Short-terms jobs: 13,920

Company-hosted traineeships, attachments and training: 21,860

Training opportunities: 12,950

Around 46,100 jobs offered by private sector employers:

Long-term jobs: 37,290

Short-term jobs: 8,830

Jobs offered by public and private sector employers:  

Government-funded opportunities or public-sector jobs accounted for most of the growth, the report showed. 

Yet, of the nearly 60,000 long-term jobs available, the private sector offered significantly more — 37,290 jobs, compared with 22,700 by the public sector. ― TODAY