Our labour market remains tight, according to some MOM reports released earlier this year. We pore over the reports and bring you their highlights – as well as our takeaway.
The labour market remained tight in Singapore, according to Manpower Ministry reports released on 27 and 30 January 2015. The situation stayed largely unchanged – there was still a glut of vacancies in the service and sales industry, and the status of positions that were unfilled for more than half a year and hard to fill by locals remained the same. Here are the highlights from the two reports and our take on them.
Lower Unemployment Numbers
Unemployment rates declined to a low of 1.9% overall last year. The unemployment rates for both citizens and residents were at 2.6%, down from 2.8% and 2.7% respectively.
The takeaway: This corresponds with more job openings in the market, but with a lower take-up/hire rate. This could be due to a mismatch of job requirements to the skill sets and qualifications of potential candidates.
Slight Rise in Workers Being Laid Off
There was a slight YoY increase in staff redundancy, from 3,660 in the fourth quarter of 2013 to 3,880 in the fourth quarter of 2014. This could be attributed to the numerous business restructuring that has been and is still taking place.
The takeaway: The restructuring of organisations is commonplace, and the marginal rise is aligned with the current economy which is setting itself up to embrace newer technologies. The redundancy should not be a cause for worry, as there is also a rise in job openings.
Steady Increase in Median Income of Singaporeans over Last Five Years
In 2009, the median income of Singaporeans was $2,748; this has risen to $3,566 in 2014. This is a 30% increase, or 11% when adjusted for inflation.
The takeaway: As more Singaporeans are receiving higher education, their wages are adjusted accordingly as well. The increase in income could also be due to an ageing population – more workers are moving into senior roles which command a higher salary.
More Job Openings Across Various Sectors
In the PMET sector, the top job openings were for teaching professionals, sales and marketing professionals and software, web and multimedia developers. Other in-demand openings were management executives, registered and enrolled nurses, and service sector job positions such as waiters and sales assistants.
The takeaway: As usual, the service sector still faces a shortage of manpower. Digital professionals are still highly sought-after and their value looks set to rise.
Hiring Locals: The Barriers
Singapore employers and employees cited the following as barriers to hiring and taking up a job: Unattractive pay, long work week, physical demands and shift work.
The takeaway: There could be a mismatch in expectations between the vacant job position’s requirements and the candidate’s. Other factors could be the lack of job vacancy awareness due to minimal or wrong placement of recruitment advertisements.
Job opportunities still abound and while the economy has reached a plateau, there are sectors such as digital media which are still growing. Organisations ought to equip their employees with relevant, up-to-date skills and seek to position themselves as an employer of choice in order to attract the right talent.
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