Singapore: What is happening to the Labour Market in 1Q 2021

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Singapore’s unemployment rate peaked at 3.5% during September 2020, but things are picking up, and confidence amongst employers is growing, slowly but surely. Uncertainties still abound for many industries – especially the hard-hitting sectors – but the Singapore Government’s swift response to supporting wages through the Job Support Scheme has played a major role in mitigating the financial impact for many businesses. 

As of 3 June 2021, the unemployment rate of Singapore stands at 2.9%. Total employment is reported to have grown in 1Q 2021, the first time since the start of the pandemic. The growth mainly resides in resident employment, while non-resident employment continues to contract across all sectors. However, retrenchment levels have also fallen to pre-pandemic figures, which is a positive sign of a broad-based recovery after 5 quarters of increment.

According to statistics by MOM, the bulk of employment expansion comes from sectors such as Information & Communications, Financial Services and Professional Services. Manufacturing and Construction continue to see muted growth, an inevitable situation due to protracted travel restrictions affecting the inflow of work pass holders. 

Despite that, hopes are still aplenty as business sentiment grows positively. In March 2021, 73% of companies indicated that they have plans to hire, which is an improvement from 65% in December 2020. The labour market in 1Q is definitely showing encouraging signs that Singapore is inching forward towards broad-based recovery, but it will still take some time before a sense of normalcy resumes. 

For more information regarding the labour market 1Q 2021 in Singapore, refer to https://stats.mom.gov.sg/Pages/Labour-Market-Advance-Release-1Q-2021.aspx

This article is written with reference from:

Ministry of Manpower Singapore. (2021, April 28). Infographic: Labour Market Advance Release First Quarter 2021. Retrieved June 21, 2021, from Mom.gov.sg website: https://stats.mom.gov.sg/Pages/Infographic-Labour-Market-Advance-Release-1Q-2021.aspx

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Hong Kong: The battle against the climbing unemployment rate

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After a series of unfortunate events due to social unrest and COVID-19 pandemic hitting the shores of Hong Kong, the unemployment rate climbed to an all-time high of 6.6% in the last quarter of 2020. This is the new 16-year peak of unemployment rate in the renowned “Asia’s world city”. 

With tourism fuelling Hong Kong’s economy significantly, it is a tough battle against COVID-19 due to unprecedented travel restrictions. Inevitably, consumer-facing services and tourism-related industries are some of the hardest-hit sectors, as unemployment spikes across companies in these affected industries.

However, this volatility does not remain negative. The employment rate has slightly plateaued and is observed to improve slowly due to the economy’s rebound and the receding of COVID-19 infections. With time, businesses have adapted to telecommunication methods, and this is the beginning of the road to recovery. As Mainland China’s economy picks up, this gradual boost is helping Hong Kong speed up its economic recovery, since Mainland China remains to be Hong Kong’s largest destination for goods imports and exports. 

Hong Kong Secretary for Labor and Welfare – Law Chi-Kwong – highlights that the labour market in Hong Kong continues to be under pressure, but hopes that the battle against the climbing unemployment rate will slowly taper off as the vaccination programme continues to keep COVID-19 under control. Although the future remains uncertain as with most countries globally, Hong Kong sees a glimmer of hope with its slow steps towards a full activation of its economic activities.

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This article is written with reference from:

Cannix Yau. “Hong Kong Fourth Wave: Jobless Rate Hits New 16-Year High of 6.6 per Cent with City Deep in Coronavirus Fight.” South China Morning Post, South China Morning Post, 19 Jan. 2021, www.scmp.com/news/hong-kong/hong-kong-economy/article/3118331/hong-kong-fourth-wave-jobless-rate-hits-new-16. Accessed 21 June 2021.

Kwan, Rhoda. “Hong Kong’s Unemployment Rate Falls as Covid Eases, Democrat Urges More Gov’t Support for Jobless | Hong Kong Free Press HKFP.” Hong Kong Free Press HKFP, Hong Kong Free Press HKFP, 20 May 2021, hongkongfp.com/2021/05/20/hong-kongs-unemployment-rate-falls-as-covid-eases-democrat-urges-more-govt-support-for-jobless/. Accessed 21 June 2021.

Lam, Eric. “Hong Kong Jobless Rate Drops for Second Month on Better Economy.” Bloomberg.com, Bloomberg, 20 May 2021, www.bloomberg.com/news/articles/2021-05-20/hong-kong-jobless-rate-drops-for-second-month-on-better-economy. Accessed 21 June 2021.

Singapore’s Job Support Scheme 2021: What you need to know

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With COVID-19 landing businesses in a harrowing situation, the Singapore Government has stepped up their support to lend a helping hand. Since February 2020, over $25 billion has been committed to effectuate the “Job Support Scheme”, all of which has cushioned the financial blow for more than 150,000 employers thus far. It has mainly subsidised between 25% and 75% of wages paid for a span of 10 months.

On February 16 2021, Deputy Prime Minister of Singapore, Mr Heng Swee Keat, announced the extension of the Job Support Scheme. Singapore will be dedicating an additional $700 million for the Job Support Scheme in 2021 to continue its support for affected businesses. Depending on which tiers of sector your business falls under, there will be varying levels of coverage.

Up till 21 June 2021, the Enhanced Job Support Scheme covers the following:

Tier 1 Sectors50% of the first $4,600 of gross monthly wages per local employee 
Tier 2 Sectors30% of the first $4,600of gross monthly wages per local employee 
Tier 3A Sectors10% of the first $4,600 of gross monthly wages per local employee  
Tier 3B SectorsNo subsidy

However, from 21 June 2021 to 30 June 2021, in light of shifting back to Phase 3 restrictions, all sectors with enhanced JSS support will receive 10% of the first $4,600 of gross monthly wages per local employee.

Aside from employers, there are also ongoing schemes to support jobseekers in the midst of the depressed job market. The target for 2021 is to support the hiring of 200,000 locals and provide up to 35,000 traineeship opportunities. $5.4billion out of the $11billion COVID-19 Resilience Package will be forked out for the extension of specific measures under the SGUnited Jobs and Skills Package. Essentially, this is Singapore’s efforts in encouraging companies to continue hiring locals by providing extended wage support up to 12 months. Companies hiring mature workers, persons with disabilities will receive up to 18 months of wage support. 

For more specific information about the classification of sector tiers for employers and payout dates, refer to https://www.iras.gov.sg/irashome/schemes/businesses/jobs-support-scheme–JSS-/. 

This article is written with reference from:

IRAS. “IRAS | Jobs Support Scheme (JSS).” Iras.gov.sg, 2021, www.iras.gov.sg/irashome/schemes/businesses/jobs-support-scheme–JSS-/. Accessed 21 June 2021.

Priya Sunil. “Singapore Budget 2021: Key Highlights for HR and Employers.” Humanresourcesonline.net, 17 Feb. 2021, www.humanresourcesonline.net/singapore-budget-2021-key-highlights-for-hr-and-employers. Accessed 21 June 2021.