Singaporean jobless rate remains stable at 2.1 pct in Q3

Singapore’s overall seasonally adjusted overall jobless rate for the September quarter remained stable at 2.1 percent, unchanged from the second quarter, according to Singapore’s Ministry of Manpower. The unemployment rate remained stable amongst residents and citizens. Total employment contracted 3,300 in the September quarter, as compared with the growth of 4,200 in the second quarter and 12,600 in the third quarter of 2015. The decline in employment is mainly because of contractions in the manufacturing and construction sectors.

In manufacturing employment dropped for the eighth straight month. In construction, it turned negative following four quarters of moderated growth. However, the declines were partly countered by employment growth in the services sector, although the rate decelerated from the second quarter.

Meanwhile, the preliminary estimates indicated that fewer workers were laid off in the third quarter, as compared to the second quarter. But the figure was still higher than that of a year ago. In the manufacturing and services sector, the layoffs dropped in the services and manufacturing sectors, whereas it rose in construction.

The domestic labor market of Singapore is expected to see further consolidation in the fourth quarter of this year and in 2017, said Selena Ling, Head of Treasury Research & Strategy at the OCBC Bank. Hiring intentions and wage growth expectations would have to adjust accordingly given the external headwinds and a weak domestic business condition.