SINGAPORE – Singapore’s labor market situation remains uncertain as risks and uncertainties in the global economy diminish even as the city state’s Covid-19 situation is controlled and its immunization program going forward, the Ministry of Defense said.
Singapore’s total employment, excluding foreign domestic workers, fell 166,600 in 2020, the biggest drop in more than two decades, data from the ministry showed Tuesday. Non-residential employment fell by 181,500 and resident employment grew by 14,900.
The average annual unemployment rate rose to 3.0% in 2020 from 2.3% in 2019, according to the data. The number of reserves increased to 26,110 in 2020 from 10,690 in 2019.
Regions outside Singapore are expected to benefit from the build-up in external demand. The information & communications and financial services & insurance sectors are likely to continue to post steady growth, supported by sustained enterprise demand for IT and digital solutions, and credit and payment processing services, respectively, the ministry said.
The tourism and aviation sectors are likely to recover at a slower pace, due to the slow build-up of global travel restrictions and weak global demand for air travel. The recovery of the city’s state labor market may be gradual and uneven across regions, the ministry said.
Write to Ronnie Harui at [email protected]