Social Issues

S’pore Unemployment Rate Highest Since 2009, But Support Measures May Save 155,000 Jobs

S’pore Unemployment Rate Highest Since 2009, But Support Measures May Save 155,000 Jobs

As Covid-19 decimates Singapore’s economy and takes away our job security, we don’t need a monthly Ministry of Manpower (MOM) Jobs Situation Report to tell us that the outlook is gloomy.

However, the report will still be churned out anyway, to tell us exactly how gloomy things are.

Let’s have the bad news first: Unsurprisingly, Singapore’s unemployment rate was the highest in 11 years in Aug.

However, there’s some good news: 155,000 jobs may be saved over 2 years, thanks to the Government’s support measures.

Aug unemployment rate rose to 4.6% for S’poreans

The MOM’s latest Jobs Situation Report, released on Wednesday (7 Oct), painted an overall grim picture: The monthly unemployment rate has been “gradually rising”.

In August, it rose to 4.6% for Singaporeans.

For residents, i.e. Singaporeans and permanent residents, it was 4.5% — 0.4 percentage points higher than in July (4.1%).

That’s a bit higher than the 0.3-percentage-point rise from June to July.

MOM didn’t give a definite indication on whether it expect this to rise in future, saying only that,

 

It remains to be seen if unemployment will rise more quickly in the coming months.

Highest jobless rate since 2009

The 4.6% unemployment rate for Singaporeans – as well as 4.5% for residents – is the highest since the 4.9% for both groups recorded in Sep 2009.

That’s according to statistics rvealed by the MOM on Wednesday (7 Oct).

The overall unemployment rate in Aug was 3.4% — 0.1 percentage points higher than the 3.3% overall unemployment rate in Sep 2009.

Source

In case you may not remember, the figures in 2009 were recorded after the Global Financial Crisis.

Sars outbreak aftermath was worse

From the MOM chart, however, we can see that our unemployment rate hasn’t hit the highs of Sep 2003.

Then, the Singaporean unemployment rate shot up to 6.4%, with residents at 6.2% and the overall at 4.8%.

Like what the MOM has said, it remains to be seen if we will reach those highs again.

Support measures to throw us a lifeline

However, there seems to be some sort of silver lining.

According to the Monetary Authority of Singapore (MAS), the 4 combined Budgets released this year, as well as the 5th one announced via a ministerial statement, will throw us a lifeline.

That’s because the economic support measures like the Jobs Support Scheme released in these Budgets will prevent some residents from losing their jobs.

MAS estimates that a rise in unemployment of about 1.7% will be offset.

That’s about 155,000 jobs that could be saved over 2020 and 2021, MOM said.

Also the Budget will stop Singapore’s economy from contracting by 5.6% of gross domestic product in 2020, and 4.8% in 2021.

Let’s hope we’ll turn a corner soon

Amid the grim tidings, perhaps we should look at the bright side.

The Government is doing all it can do to avert greater disaster with various support schemes.

As the number of Covid-19 cases drops in Singapore, let’s hope we’ll turn a corner soon and more people will find good jobs again.

Have news you must share? Get in touch with us via email at hello@mustsharenews.com

Featured image adapted from MS News.

Jeremy Lee

Analog person making do with a digital world.

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