Unemployment in Singapore hit a six-year low in August 2022. However, the Ministry of Manpower has warned of the risk of economic stagnation. Due to this risk, the country’s labor market may be affected. According to a Straits Times report, overall unemployment stood at 1.9 percent last August. However, during this period, unemployment among foreign residents of the country fell to 2.7 percent, and unemployment among citizens fell to 2.8 percent. So, Singapore’s Unemployment Fall To A Six-year Low.
All three rates were below 2.2 percentage points in July, according to the ministry’s monthly unemployment situation report. The church noted that 64,800 residents were unemployed in August. The number of unemployed among the citizens was 57 thousand.
August unemployment was the lowest in the nation’s history since March 2016. Until mid-2020, unemployment figures were published on a marginal basis. At that time, it was said by the ministry that it is necessary to monitor the situation during the Covid-19 pandemic more closely. The ministry warned of risks ahead. As the economic crisis is seen to be worse than the previous month. Hiring activities were significantly reduced due to the disruption of the tourism sector.
According to the Ministry of Manpower, unemployment is currently lower than the pre-pandemic level. However, risks of contraction in construction activity, rising inflation, and interest rates could weaken labor market conditions. The average unemployment rate was 2.2 percent in 2018 and 2019 before the pandemic hit. Three percent of foreign residents and 3.2 percent of citizens were unemployed.
Singapore’s industrial output rose just 10.5 percent in August. Also, last month, the manufacturing activity index (PMI) contracted for the first time in two years. Many analysts fear that such a downward trend in these sectors may increase unemployment.
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