UNEMPLOYMENT AND LONG-TERM UNEMPLOYMENT RATES REMAIN ELEVATED
The unemployment and long-term unemployment charges “stay elevated”, stated MOM.
That is regardless of the downtrend in seasonally adjusted unemployment charges in June, with the speed at 3.5 per cent for residents and three.7 per cent for residents.
The seasonally adjusted resident long-term unemployment fee additionally dipped to 0.9 per cent in June, from the excessive of 1.1 per cent in December 2020 and March 2021.
Within the first half of the 12 months, there have been 4,620 retrenchments, or 2.3 retrenchments for each 1,000 workers.
“These have been corresponding to the half-yearly ranges seen in 2018/2019,” stated MOM.
By quarter, retrenchments have been barely larger within the second quarter with 2,340 layoffs, in contrast with 2,270 retrenchments within the first quarter. That is amid the Part 2 (Heightened Alert) measures.
Extra workers, notably these within the meals and beverage companies, have been positioned on brief work-week or momentary layoff within the second quarter – 5,580 in comparison with 4,020 within the first quarter.
“Whereas the quantity remained elevated in comparison with pre-pandemic instances, the prevalence of such momentary work preparations helped to maintain retrenchments comparatively low in 1H 2021,” stated MOM.
The six-month re-entry fee amongst retrenched residents dipped barely within the second quarter, following enhancements within the fourth quarter of 2020 and the primary quarter of this 12 months. It fell from 66 per cent to 64 per cent.
As vaccination charges proceed to rise, home and border restrictions ought to be eased progressively, stated MOM.
“This could increase employment ranges and progressively scale back unemployment charges.
“Nevertheless, we must always count on the labour market restoration to be uneven throughout sectors as uncertainties within the exterior financial surroundings stay.”
Tourism- and aviation-related sectors are projected to have a “sluggish restoration” as “journey restrictions globally are prone to be lifted cautiously and world journey demand might also stay sluggish amidst the unfold of extra contagious strains of the virus”, stated MOM.
Exercise in these sectors is predicted to stay “considerably under” pre-pandemic ranges even by the top of the 12 months.
In the meantime, consumer-facing sectors reminiscent of meals and beverage companies and retail commerce ought to begin to get well, as home restrictions ease over the 12 months.
Nevertheless, they don’t seem to be anticipated to return to pre-pandemic ranges because of the “subdued” tourism outlook.
“Against this, the expansion prospects for outward-oriented sectors stay sturdy given the rebound in world demand. These embody the manufacturing, wholesale commerce, data and communications and monetary and insurance coverage companies sectors.”