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Total employment saw a modest expansion in 1Q 2021, including in construction

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Singapore, 30 April 2021 – Advanced estimates showed the labour market continue to recover from the impact of the COVID-19 pandemic. Resident employment grew at a moderate pace but outstripped the smaller decline in non-resident employment. As a result, for the first time since 4Q 2019, total employment saw modest expansion in 1Q 2021.

The number of retrenchments declined for the second consecutive quarter, to a level usually observed in 2018 and 2019. Unemployment rates eased further in March 2021, though they remained elevated. In 1Q 2021, total employment grew for the first time since the start of the COVID-19 pandemic.

Total employment (excluding migrant domestic workers or MDWs) grew in 1Q 2021, after four consecutive quarters of decline. In 1Q 2021, the bulk of the employment increases were in services sectors such as information and communications, financial services, and professional services.

Following sustained contractions in the preceding quarters, total employment in construction saw a slight rebound in 1Q 2021, as the contraction in non-resident employment moderated significantly. On the other hand, employment in manufacturing continued to contract, albeit at a slower pace.

Against the backdrop of a gradually recovering economy, unemployment rates saw a further easing of 0.1 per cent point in March 2021. Since peaking in September 2020, unemployment rates have fallen steadily over the past two quarters, though still remaining elevated compared to pre-COVID-19 rates. Retrenchments are expected to decline to levels usually observed in 2018 and 2019

The labour market is still not fully back to pre-COVID-19 conditions. As a result of on-going travel and entry restrictions, hiring remains subdued in sectors such as construction and hospitality. Unemployment rates may have eased but remain higher than before the pandemic. Nevertheless, preliminary data for 1Q 2021 showed an encouraging pick-up in employment that was fairly broad-based.

– Construction+ Online

Source: Ministry of Manpower