Q1 2012: A Softening Labour Market
15 June 2012
Today’s Q1 2012
report shows the impact of the subdued global economic
outlook on the employment landscape, with the overall seasonally
adjusted unemployment rate rising slightly to 2.1% in Mar 2012, from
2.0% in Dec 2011. Similarly, the unemployment rate increased over the
same period for residents from 2.9% to 3.0% and citizens from 3.0% to
3.2%. We have also seen some easing of tightness in the
labour market, with job vacancies falling to 105 job openings
for every 100 job seekers, compared to 120 per 100 (seasonally
adjusted) in Dec 2011.
For employers, this is
some relief as it means manpower shortages would have eased somewhat with a
closer balance of vacancies and jobseekers in the labour market. So
it could be slightly easier now for employers to fill vacancies. For job
seekers, while there
has been a drop in vacancies, the fact remains that there are a sizable 47,000
vacancies (non-seasonally-adjusted) waiting to be filled. Nonetheless,
with the ratio of job openings to job seeker at close to 1 to
1 (seasonally adjusted), some may not find that ideal job-match. Some may
have to be more flexible in their job search. While others may need
to undergo training so they can refresh their skills and improve their
employability or move to another sector.
Some Concerns
Looking Ahead
One concern is that
while long-term unemployment has remained low, the long-term
unemployment rate crept up over the year for residents aged 30 to 39 (from
0.3% to 0.4%) and mature residents aged 40 & over (from 0.7% to
0.8%). Nearly one in four (24%) or 14,000 of the unemployed residents
in March 2012 were looking for work for at least 25 weeks, up from
22% or 11,800 a year ago.
What does it mean? This group of
job seekers remains unemployed and is still unable to secure a new
job after an extended period of time, thus, skills obsolescence
could potentially set in.
We are working closely with WDA to see
what more we can do to help them – the key is to ensure we get
those displaced from work to take up new jobs quickly while also
being job ready for their new positions – whether it is through
training and gaining skills in the same or different industry.
CaliberLink has been
playing this role since it opened its doors earlier this year,
particularly for PMEs. The one-stop employment exchange and learning
gateway, set up by WDA, helped 55-year-old Mr Cheong Yew
Leong. Mr Cheong used to work as an IT administrator for a
manufacturing firm before he was laid off due to a downsizing exercise last
year.
After being laid
off, Mr Cheong tried to find full-time employment. However, for
the first six months, he only managed to secure IT jobs on a freelance basis.
Then, he found out about CaliberLink. A staff
at CaliberLink informed him of a recruitment event, which he
attended. At the session, he had the opportunity to meet up with
representatives from companies like Hewlett-Packard (HP), Challenger and NTUC
Income. They shared with Mr Cheong their hiring plans and
he realised that some of them had available positions that were
suitable for him. Soon after the recruitment event, he was invited
by HP to attend a job interview at CaliberLink. A month later, he was
hired and is now a Field Service Engineer.There are many more examples of those
like Mr Cheong, who have sought and found job assistance
through CaliberLink, Career Centres@ CDCs and NTUC’s e2i. And
the good news is that more of them are being placed and job-matched,
with about 1,600 unique placements in April, compared to
about 1,200 in January. We must press on with our efforts on this front.
Looking Ahead
Overall, employers
surveyed have indicated an improved employment outlook. They expect
to expand headcounts in anticipation of better business conditions ahead. In
line with this sentiment, earlier in the week, the HR consultancy Manpower
released its survey which showed that a net balance of some 23% of
employers are predicting an increase in staffing levels in the third quarter.
Here at MOM, we
continue to keep a watchful eye on the employment situation, even as
analysts expect Singapore’s economy to grow some 3% this
year despite the Eurozone crisis and global risks, which is
on the higher end of MTI’s forecast range. In the second quarter, we will
usually see more job seekers, particularly this year’s cohort of graduates,
joining the job market. Together with our tripartite partners,
we are closely monitoring the employment situation, and will be
ready to tackle the ups or downs of both the economy and
the labour market.
