SINGAPORE: The seasonally adjusted resident unemployment rate rose from 3 per cent in June 2016 to 3.1 per cent in June this year, according to the latest figures released by the Ministry of Manpower (MOM) on Thursday (Nov 30).
This is the highest since 2010.
In the Labour Force in Singapore Advance Release 2017 report, MOM said the lower employment rate for those aged 15 and above, which declined from 65.3 per cent to 64.9 per cent, reflected population ageing and the “higher propensity of youths to postpone entry into the labour force as they pursue further education”.
The employment rate for those aged 15 to 24 decreased from 35.8 per cent in June last year to 34.1 per cent in June this year.
However, the employment rate for residents aged 25 to 64 continued to increase, from 80.3 per cent to 80.7 per cent during the same period. For residents aged 65 and over, the employment rate increased from 25.5 per cent to 25.8 per cent.
There was also a difference between the unemployment rates for professionals, managers, executives and technicians (PMETs) compared to non-PMETs.
The unemployment rate for PMETs fell slightly from 3.1 per cent in June 2016 to 3 per cent in June 2017, and their long-term unemployment rate also improved from 0.9 per cent to 0.7 per cent in the same period.
MOM said this could have been aided by enhancements to programmes that assist PMETs, especially those aged 40 and over, in securing employment.
However, unemployment among non-PMETs rose in 2017 from 4.2 per cent in June 2016 to 4.5 per cent in June this year.
These workers found it harder to secure a job with the continued decline in non-PMET job vacancies, MOM said.
Nonetheless, they are unlikely to be unemployed for long as their long-term unemployment rate for non-PMETs remained unchanged at 0.7 per cent, it added.
INCOME GROWTH UP WITH IMPROVEMENT IN ECONOMY
According to the report, the median income of full-time employed residents including employer CPF contributions rose faster year-on-year by 4.2 per cent in June 2017 compared to 2.7 per cent in June last year in nominal terms, and 3.7 per cent compared to 3.3 per cent in real terms.
This was due to the improvement in economic conditions and demand for higher-skilled manpower, MOM said.
Over the last five years from June 2012 to June 2017, real income at the 20th percentile grew at a sustained pace of 4.2 per cent per annum, faster than the median of 3.4 per cent per annum.
The growth was supported by Government initiatives to raise incomes of low-wage workers, MOM said. Real income growth for both groups were significantly faster than in the preceding five years, it added.
“For real income growth to be sustained, firms will have to continue to transform and grow to become more productive. In a manpower-lean environment, it is also important for firms to adopt progressive human capital practices. They will have to invest in their workers and build inclusive workplaces to value every employee regardless of age, gender and qualification,” the Manpower Ministry said in a press release.
MOM said that the Government will also need to press on with efforts to help low-wage workers be better deployed, allow older workers to remain in employment longer and make more flexible work arrangements available, especially for those with caregiving responsibilities.
