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MOM: Job vacancies declined despite strongest employment growth in 5 years

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5 years ago

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The Ministry of Manpower (MOM) released a labour market report on Thursday (12 March) highlighting that business uncertainties have led to cautious hiring by firms which have reduced job availabilities for the entire 2019 compared to 2018.

Last year, employment grew by 57,000 jobs in net terms, which is an increase from 38,300 jobs in 2018 while also making 2019 the strongest growth in five years. As for retrenchments in 2019, it remained low at 10,690 which is similar to 10,730 in 2018.

According to the Manpower Minister Josephine Teo in the report briefing to reporters, the resident re-entry rate was “one of the things that was quite encouraging last year”. The resident re-entry rate represents retrenched Singapore residents who returned to work in 2019.

MOM’s media statement read “The labour market held up in 2019, but the outlook for 2020 is uncertain against the backdrop of global economic uncertainties and the evolving Covid-19 outbreak.”

The decline in the ratio of job vacancies to unemployed persons reflects the decline in hiring sentiment last year. If one job vacancy is available for every person looking for work, the figure will be one. A higher figure means that prospects are better for job seekers.

December’s ratio of 0.84 was the same as September last year. However, this figure is the lowest since the mid-2017 and a steep decline from mid-2018’s 1.09.

The MOM report stated that the decline in the number of available jobs in the whole economy is the reason behind the decline. The fall in vacancies in small private sector firms (with workers less than 25 people) is greater than the increase in vacancies larger private firms.

Ms Teo recalled that this seasonally-adjusted ratio dropped below 0.5 during the 2003 SARS outbreak. During the 2008 global financial crisis, it also declined to 0.53.

In Singapore, the most impacted sectors are retail, tourism, air transport and food services and Ms Teo stressed that if large scale job losses can be avoided, not many people will be negatively affected even if the ratio does not increase by a lot.

The main priority now is to preserve jobs, because an increase retrenchment rates will turn the labour market “very unfavourable”, she cautioned.

In light of all this, Ms Teo was surprised at the unexpected slight increase in the re-entry rate to 65.9 per cent in 2019 as she had thought it would stay at 2018’s 64.2 per cent.

Employment growth

The net new jobs totally 57,000 last year was an “unexpectedly good” outcome, even in the midst of economic challenges, Ms Teo remarked. This figure accounts for job losses but not foreign domestic workers.

She added that “It was better than most of us could foreseeably expect given the uncertainty”.

Total employment rose with the increase in 28,300 net new jobs to locals last year, from 27,400 in 2018. Also, 2019’s foreign employment growth, not including construction, dropped to 14,900 from 16,300 in 2018. New jobs that went to foreigners amounted to 28,700, not including foreign workers in the construction sector as well as foreign domestic workers.

The sectors that fuelled employment growth were the construction and services sector. Last year, the construction sector saw a first ever 12,500 increase in employment in four years. Also, the services sector saw an increase by 47,000 workers in 2019, similar to 2018 with employment increases in community, social and personal services, professional services and information and communications. On the other hand, there was a decline by 2,400 workers in the manufacturing sector last year, making it the sixth consecutive year of decline.

Unemployment rate

The MOM report highlights that unemployment rates stayed in the comparatively low range of recent years, despite the slight increase in 2019. The annual average resident long-term unemployment rate remained steady at 0.7 per cent.

Ms Teo stated thought that “it will be a challenge to keep unemployment at this sort of relatively low ranges. So for the next few months at least our focus is really to prevent large scale job losses.”

Based on the report, citizen unemployment rate stood at 3.3 per cent last year, an increase from 3 per cent in 2018. Also, resident unemployment rate (the combination of Singapore citizens and permanent residents) increased to 3.1 per cent last year, an increase from 2.9 per cent in 2018. As for the overall unemployment rate (including both foreigners and residents), it increased to 2.3 per cent last year, a small spike from the 2.1 per cent in 2018.

As of December last year, the number of unemployed residents was 73,900. From this figure, 63,500 form Singapore citizens who were jobless in 2019.

Job vacancies

According to MOM report, vacancies in December 2019 were less than in December 2018 because companies are more cautious in hiring as a result of poor business sentiments.

The fall in job vacancies was “broad based” in 2019, the report noted. In the production and related sectors, particularly the construction sector, there were 3,900 job vacancies lost. Also, in sectors such as transportation and storage as well as administrative and support services saw job vacancy loss among clerical, sales and service workers totally 2,300. Primarily in the manufacturing sector, 1,600 professionals, managers, executives and technicians (PMETs) job vacancies were lost.

Retrenchments and re-entry rate

The most cited reason for business restructuring and organisation was retrenchments. Last year, 68 per cent of companies cited this reason as well as 46 per cent of companies in 2018.

According to the report, sectoral downturns has led to an increasing trend in retrenchments, with 21 per cent of downsizing firms citing that reason last year and 13 per cent in 2018.

A total of 73.6 per cent of local retrenchments are made up of PMETs last year, although there was a decrease from 75.8 per cent in 2018. A larger proportion of the workforce is made up by PMETs but now the likelihood of retrenchment was less, the report stated.

The ratio of PMETs among employed locals generally mirrored the profile of retrenched locals. The report highlighted that most retrenchments happened in PMET-dominated sectors.

Most retrenchments took place in the services sector at 66 per cent, especially in financial services, professional services and wholesale trade. On the other hand, 8 per cent retrenchment was in the construction sector and 26 per cent in the manufacturing sector.

Amidst these decreases, there was also some growth in re-entry rates last year to 65.9 per cent, a slight rise from the 64.2 per cent in 2018. A total of 67 per cent of Singapore residents who re-entered the labour market got a job in a different industry compared to their previous jobs. The report noted however that those from retail trade and construction jobs were more likely to re-enter a similar industry.

MOM is “working hard” to boost re-entry rates by finding firms who are still employing workers so that these displaced workers can be matched to those firms, Ms Teo assured.

MOM had launched an initiative to identify all job openings and firms who were hiring in many growth sectors, such as manufacturing, healthcare and financial services even prior to the coronavirus outbreak. Jobseekers had published job adverts to notify them of the available openings, “so don’t give up just yet”, Ms Teo encouraged.

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TJC issued 3rd POFMA order under Minister K Shanmugam for alleged falsehoods

The Transformative Justice Collective (TJC) was issued its third POFMA correction order on 5 October 2024 under the direction of Minister K Shanmugam for alleged falsehoods about death penalty processes. TJC has rejected the government’s claims, describing POFMA as a tool to suppress dissent.

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5 days ago

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6 October 2024

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The Transformative Justice Collective (TJC), an advocacy group opposed to the death penalty, was issued its third Protection from Online Falsehoods and Manipulation Act (POFMA) correction direction on 5 October 2024.

The correction was ordered by Minister for Home Affairs and Law, K Shanmugam, following TJC’s publication of what the Ministry of Home Affairs (MHA) alleges to be false information regarding Singapore’s death row procedures and the prosecution of drug trafficking cases.

These statements were made on TJC’s website and across its social media platforms, including Facebook, Instagram, TikTok, and X (formerly Twitter).

In addition to TJC, civil activist Kokila Annamalai was also issued a correction direction by the minister over posts she made on Facebook and X between 4 and 5 October 2024.

According to MHA, these posts echoed similar views on the death penalty and the legal procedures for drug-related offences, and contained statements that the ministry claims are false concerning the treatment of death row prisoners and the state’s legal responsibilities in drug trafficking cases.

MHA stated that the posts suggested the government schedules and stays executions arbitrarily, without due regard to legal processes, and that the state does not bear the burden of proving drug trafficking charges.

However, these alleged falsehoods are contested by MHA, which maintains that the government strictly follows legal procedures, scheduling executions only after all legal avenues have been exhausted, and that the state always carries the burden of proof in such cases.

In its official release, MHA emphasised, “The prosecution always bears the legal burden of proving its case beyond a reasonable doubt, and this applies to all criminal offences, including drug trafficking.”

It also pointed to an article on the government fact-checking site Factually to provide further clarification on the issues raised.

As a result of these allegations, both TJC and Annamalai are now required to post correction notices. TJC must display these corrections on its website and social media platforms, while Annamalai is required to carry similar notices on her Facebook and X posts.

TikTok has also been issued a targeted correction direction, requiring the platform to communicate the correction to all Singapore-based users who viewed the related TJC post.

In a statement following the issuance of the correction direction, TJC strongly rejected the government’s claims. The group criticised the POFMA law, calling it a “political weapon used to crush dissent,” and argued that the order was more about the exercise of state power than the pursuit of truth. “We have put up the Correction Directions not because we accept any of what the government asserts, but because of the grossly unjust terms of the POFMA law,” TJC stated.

TJC further argued that the government’s control over Singapore’s media landscape enables it to push pro-death penalty views without opposition. The group also stated that it would not engage in prolonged legal battles over the POFMA correction orders, opting to focus on its abolitionist work instead.

This marks the third time TJC has been subject to a POFMA correction direction in recent months.

The group was previously issued two orders in August 2024 for making similar statements concerning death row prisoners.

In its latest statement, MHA noted that despite being corrected previously, TJC had repeated what the ministry views as falsehoods.

MHA also criticised TJC for presenting the perspective of a convicted drug trafficker without acknowledging the harm caused to victims of drug abuse.

Annamalai, a prominent civil rights activist, is also known for her involvement in various social justice campaigns. She was charged in June 2024 for her participation in a pro-Palestinian procession near the Istana. Her posts, now subject to correction, contained information similar to those presented by TJC regarding death penalty procedures and drug-related cases.

POFMA, which was introduced in 2019, allows the government to issue correction directions when it deems falsehoods are being spread online.

Critics of the law argue that it can be used to suppress dissent, while the government asserts that it is a necessary tool for combating misinformation. The law has been frequently invoked against opposition politicians and activists.

As of October 2024, Minister K Shanmugam has issued 17 POFMA directions, more than any other minister. Shanmugam, who was instrumental in introducing POFMA, is followed by National Development Minister Desmond Lee, who has issued 10 POFMA directions.

Major media outlets, including The Straits Times, Channel News Asia, and Mothership, have covered the POFMA directions. However, as of the time of writing, none have included TJC’s response rejecting the government’s allegations.

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Current Affairs

Hotel Properties Limited suspends trading ahead of Ong Beng Seng’s court hearing

Hotel Properties Limited (HPL), co-founded by Mr Ong Beng Seng, has halted trading ahead of his court appearance today (4 October). The announcement was made by HPL’s company secretary at about 7.45am, citing a pending release of an announcement. Mr Ong faces one charge of abetting a public servant in obtaining gifts and another charge of obstruction of justice. He is due in court at 2.30pm.

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1 week ago

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4 October 2024

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SINGAPORE: Hotel Properties Limited (HPL), the property and hotel developer co-founded by Mr Ong Beng Seng, has requested a trading halt ahead of the Singapore tycoon’s scheduled court appearance today (4 October) afternoon.

This announcement was made by HPL’s company secretary at approximately 7.45am, stating that the halt was due to a pending release of an announcement.

Mr Ong, who serves as HPL’s managing director and controlling shareholder, faces one charge under Section 165, accused of abetting a public servant in obtaining gifts, as well as one charge of obstruction of justice.

He is set to appear in court at 2.30pm on 4 October.

Ong’s charges stem from his involvement in a high-profile corruption case linked to former Singaporean transport minister S Iswaran.

The 80-year-old businessman was named in Iswaran’s initial graft charges earlier this year.

These charges alleged that Iswaran had corruptly received valuable gifts from Ong, including tickets to the 2022 Singapore Formula 1 Grand Prix, flights, and a hotel stay in Doha.

These gifts were allegedly provided to advance Ong’s business interests, particularly in securing contracts with the Singapore Tourism Board for the Singapore GP and the ABBA Voyage virtual concert.

Although Iswaran no longer faces the original corruption charges, the prosecution amended them to lesser charges under Section 165.

Iswaran pleaded guilty on 24 September, 2024, to four counts under this section, which covered over S$400,000 worth of gifts, including flight tickets, sports event access, and luxury items like whisky and wines.

Additionally, he faced one count of obstructing justice for repaying Ong for a Doha-Singapore flight shortly before the Corrupt Practices Investigation Bureau (CPIB) became involved.

On 3 October, Iswaran was sentenced to one year in jail by presiding judge Justice Vincent Hoong.

The prosecution had sought a sentence of six to seven months for all charges, while the defence had asked for a significantly reduced sentence of no more than eight weeks.

Ong, a Malaysian national based in Singapore, was arrested by CPIB in July 2023 and released on bail shortly thereafter. Although no charges were initially filed against him, Ong’s involvement in the case intensified following Iswaran’s guilty plea.

The Attorney-General’s Chambers (AGC) had earlier indicated that it would soon make a decision regarding Ong’s legal standing, which has now led to the current charges.

According to the statement of facts read during Iswaran’s conviction, Ong’s case came to light as part of a broader investigation into his associates, which revealed Iswaran’s use of Ong’s private jet for a flight from Singapore to Doha in December 2022.

CPIB investigators uncovered the flight manifest and seized the document.

Upon learning that the flight records had been obtained, Ong contacted Iswaran, advising him to arrange for Singapore GP to bill him for the flight.

Iswaran subsequently paid Singapore GP S$5,700 for the Doha-Singapore business class flight in May 2023, forming the basis of his obstruction of justice charge.

Mr Ong is recognised as the figure who brought Formula One to Singapore in 2008, marking the first night race in the sport’s history.

He holds the rights to the Singapore Grand Prix. Iswaran was the chairman of the F1 steering committee and acted as the chief negotiator with Singapore GP on business matters concerning the race.

 

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