High-skilled workers make bulk of layoffs last year
Office workers at Raffles Place. TODAY file photo
HIGHER-skilled workers, degree holders and middle-aged workers were the hardest hit by layoffs in Singapore last year, making up more of the pool of resident workers made redundant than workers of other occupational, educational and age groups.
These groups were also less likely than other resident workers to be in employment within six months of being made redundant, Ministry of Manpower (MOM) statistics showed.
Of the Singaporeans and permanent residents who lost their jobs last year, more than seven in 10 (71%) were professionals, managers, executives and technicians, up from 66% the year before.
This was disproportionately higher than their 54% share of the resident workforce last year.
Between workers with different educational qualifications, degree holders made up the largest share – 44% – of residents who lost their jobs last year. This was up from 41% in 2014.
One in three of the resident workers made redundant last year was aged 40 to 49, despite this group making up only about one in four of the overall resident workforce.
Less than half of both degree holders and middle-aged workers who were made redundant in the third quarter of the year were back in employment by December.
Some workers could have decided to go for training or stop looking for a job, MOM said in its report.
But another reason could be that older workers already have preferences, such as not wanting to do shift work, said Linda Teo, country manager of human resource firm ManpowerGroup Singapore.
“This means they won’t be at the top of the list when employers sieve through applications.”
Adecco Singapore country manager Femke Hellemons said workers here often move from industry to industry for a comparative advantage, and skilled workers may take more time to find a job that they have the right skills for that also matches their pay expectations.
Losing a job would be a blow for those over 40 years old and with higher skills as they tend to have higher financial obligations such as mortgages and children’s study loans, but at the same time they are more costly to employers, said DBS economist Irvin Seah.
Overall, redundancies rose over the year while the number of vacancies fell, which experts said was because of weak global demand.
“This could be a sign of companies adopting measures to achieve cost efficiencies through outsourcing, offshoring and adoption of technologies in their work processes,” said Foo See Yang, vice-president and country general manager of Kelly Services Singapore.
ManpowerGroup’s Teo said the employment pattern is likely to continue its downward slide, as hiring intentions for the next three months are at their weakest since the third quarter of 2009. — The Straits Times/Asia News Network
Layoffs in S'pore last year highest since 2009 Global crisis
In what could be a sign of worse things to come, more workers lost their jobs last year amid weaker economic conditions, although unemployment remained low.
A total of 15,580 workers were laid off in 2015, the fifth consecutive year of rising redundancies, according to full- year official data released by the Manpower Ministry (MOM) yesterday.
Last year's number climbed 20 per cent from 12,930 in 2014 and was the highest since the 2009 global financial crisis, which saw 23,430 workers laid off.
Job vacancies also fell to 53,700 as of December after accounting for seasonal variation, down 18 per cent from 65,500 a year earlier.
The trend could continue. "Amid the cyclical weakness and as the economy restructures, some consolidation and exit of businesses is expected," MOM said.
Just over half, or 51 per cent, of the Singaporeans and permanent residents (PRs) made redundant from July to September last year were back in employment by the end of the year.
This figure measures the re-entry rates within six months of redundancy based on Central Provident Fund (CPF) records, and was down from 55 per cent three months earlier and 59 per cent at the end of 2014.
Still, the unemployment rate last year remained unchanged for Singaporeans, at 2.9 per cent. The figure including PRs was 2.8 per cent, up from 2.7 per cent in 2014.
There were 2,268,900 Singaporeans and PRs in jobs in Singapore as of the end of last year, just 700 more than there were a year earlier - when local employment had grown by 96,000.
With employment of foreigners also slowing, the total number of workers here stood at 3,656,200 at the end of last year.
For the year ahead, MOM expects redundancies to continue to rise in sectors facing weak external demand and that are undergoing restructuring, while domestic services sectors are likely to continue to need workers.
The Ministry added that it is "closely monitoring the current economic and labour market situation, and is strengthening employment support to help displaced locals re-enter employment".
PMETs made up 71% of those affected as workers found it more difficult to get new jobs
SINGAPORE — The number of workers laid off last year spiked 20.5 per
cent compared with 2014, reaching 15,580 — the highest number since the
global financial crisis seven years ago, the latest Ministry of Manpower
labour market report showed on Tuesday (March 15).
In 2009, the
number of redundancies reached more than 23,000. The majority of last
year’s lay-offs were in the services sector (55 per cent), where the
financial services, wholesale trade and professional services were worst
hit. Correspondingly, professionals, managers, executives and
technicians (PMETs) made up 71 per cent of those laid off last year, up
from 66 per cent in 2014.
The financial services sector — which had been hit by news of
job cuts announced by global banks, affecting employees here — shed
1,710 jobs last year, compared to 1,280 in 2014. Over the same period,
the number of workers laid off in wholesale trade climbed from 1,490 to
2,150, while job losses for those in professional services — including
doctors, lawyers and accountants — rose from 1,520 to 2,290.
Workers
who were laid off also found it more difficult to get a new job last
year: Based on Central Provident Fund records, half of the residents
made redundant in the third quarter of last year managed to secure
employment by December, down from 55 per cent in the previous quarter,
and 59 per cent in the same period in 2014.
MOM said it expects
redundancies to continue to rise in sectors facing weak external demand
and those that are undergoing restructuring. Domestic-oriented services
sector will continue to need workers, the ministry said. “MOM is closely
monitoring the current economic and labour market situation, and is
strengthening employment support to help displaced locals re-enter
employment,” it added.
Economists
told TODAY that the slower global economic growth and the downturns in
manufacturing as well as the oil and gas sectors have had a spillover
effect into the services sector.
DBS Bank senior economist Irvin
Seah said the slump in oil prices not only affect oil rig builders but
the entire supply chain including smaller companies that support the oil
and gas sector. The financial services sector would continue to see
more job losses compared to other segments as it is going through some
consolidation, Mr Seah said. As far as the labour market is concerned,
the worst is yet to come as the global economic outlook deteriorates, he
cautioned.
CIMB Private Banking economist Song Seng Wun said that
while lay-offs may not necessarily increase over the year with some
sectors still hiring, the pace of hiring may slow and this could push
the unemployment rate up. “I would expect job seekers to take even
longer to find a new job in the year head. Businesses may not be laying
off more workers but they may not be that in a hurry to hire,” Mr Song
said.
Unemployment rate for residents was 2.8 per cent last year,
inching up from 2.7 per cent in 2014, while that for citizens remained
unchanged at 2.9 per cent.
Mr Seah noted that the foreigners has
borne the brunt of the job losses so far. “Companies are unwilling to
let go of local workers because of the low foreign worker dependency
ratio ceiling,” he said.
On the high proportion of PMETs laid off
last year, Members of Parliament (MPs) from the labour movement
attributed it to the fact that this group of workers comprise a higher
percentage of the total workforce. Still, NTUC assistant
secretary-general Patrick Tay, who is also an MP for West Coast GRC,
said he was particularly concerned about PMETs above 40 years old, who
would have a harder time finding a new job if they are retrenched.
Mr
Tay, who co-chairs the Financial Sector Tripartite Committee which
helps professionals seeking to find new jobs in the sector, suggested
adopting a sectoral approach to provide more targeted and focused help
in sectors where affected by high job losses.
Last month, the
Association of Banks in Singapore announced that it has initiated a jobs
portal that allows its members to refer their staff for suitable
positions in other banks.
NTUC director of youth development
Desmond Choo, who is an MP for Tampines GRC, said more efforts are
needed to help PMETs. “We need to be able to re-skill, re-tool them (to
join) other growing sectors … like healthcare and ICT (information
communication technology),” said Mr Choo. More could also be done to
provide “hardship support” for the families of retrenched PMETs while
they look for a job, he added.
Advanced data released by MOM in
January showed that Singapore saw its worst year-on-year employment
growth since 2003 last year.
Confirming the labour market’s
sluggish performance, the latest MOM report said that excluding foreign
domestic workers, total employment grew by 23,300 – or 0.7 per cent –
last year, compared to increases of 122,100 (3.7 per cent) and 131,300
(4.2 per cent) in 2014 and 2013, respectively.
The growth in local
employment was flat: Only 700 of the jobs added were filled last year
by Singaporeans and Permanent Residents, compared to 96,000 and 82,900
in 2014 and 2013 respectively.
By Laura Elizabeth Philomin
lauraphilomin@mediacorp.com.sg
Households feeling the pinch
Work needed: With layoffs hitting a six-year high last year, there has been a sudden surge in the number of applications for jobs.
WITH fewer clients using her contractor husband’s renovation services, 41-year-old commodity specialist Wong C.K. and her family have had to make swift decisions to cope with a smaller budget.
The family income has shrunk by more than half – from S$11,500 to S$5,500 (RM34,290 to RM16,400) – after her husband’s business fell by about 70% since 2014.
Their 10-year-old daughter now goes for group tuition instead of more costly private sessions, saving them S$250 (RM745.40) a month.
They will also opt for staycations in Sentosa, instead of their usual jaunts to Japan or South Korea for the annual family holiday.
“We still have some savings to lean back on, but this is not sustainable. We will give up the car if my husband cannot find a different job in the next two months,” she says.
With the economy set to grow at a modest 1% to 3% this year, economists and MPs expect to see tougher times ahead, with many companies likely to see weaker profits or even losses as demand starts to dry up.
But for now, at least, households are likely to be sheltered from the heavy storms, supported by a tight labour market, strong wage growth that has bolstered savings over the past few years.
As Nee Soon GRC MP Lee Bee Wah puts it: “Families are coping for now, but they are probably more cautious in spending.”
Holland-Bukit Timah GRC MP Liang Eng Hwa, who chairs the Government Parliamentary Committee for Finance, says: “The economy is undergoing a cyclical downturn and it is likely to impact businesses and their bottomlines.”
But the relief could be temporary, especially if things turn much worse and retrenchments start to pile up.
“With shrinking business orders, many companies are, understandably, on cost-reduction mode. The indicator to watch is job losses,” says Liang.
Last year, layoffs hit a six-year high, with the economy shedding about 15,580 workers, and the fear among observers is that this could snowball this year.
So far, there have been several high-profile retrenchment exercises.
In February, Japanese online retailer Rakuten and media company Yahoo axed a number of staff. Foreign bank Barclays also cut about 70 jobs here in January.
Among the most vulnerable are also likely to be the most educated with professionals, managers, executives and technicians (PMETs) particularly at risk.
This group formed 71% of the 15,580 Singaporeans and permanent residents who lost their jobs last year, up from 66% the year before.
This is disproportionately higher than their 54% share of the resident workforce last year.
Job recruitment firms have also noticed a sudden surge in the number of applications – a sign that more people are in need of employment.
For example, Kelly Services Singapore has had about 10% more applications from last December to this February, compared to the same period the year before.
At Human Capital Singapore, director David Ang says there are over 600 applications for nine job postings since January, but only 460 applications for the same number of job postings during a 10-month period from March last year.
“People need to moderate their expectations,” he adds, noting that there are also fewer vacancies in some sectors now.
These include industries like oil and gas, construction, electronic manufacturing, shipping and commercial banking.
The bigger worry is that workers who have been retrenched may not be able to find their way back to a job quickly.
A 50-year-old offshore engineer retrenched last July, who wants to be known only as Heng, says he now has more time to spend with his three teenage children, but worries about financing big-ticket items.
He and his bank officer wife have “more or less” paid up for their three-bedroom condominium in the east, “but there will come a time when we need to look at our funds and see if there’s enough to send our kids to university, and for retirement”.
“At my age and in my industry, though, it is hard,” he says.
The Government has recognised the problem and pushed hard for the national SkillsFuture movement, which hopes to promote lifelong learning and help workers stay relevant and competitive.
The results, however, may take years to manifest.
“For now, we need to look into what, and how, workers should specialise more deeply in their skills and find jobs,” says labour MP Desmond Choo, who is also MP of Tampines GRC.
“Middle-aged and mature workers might face challenges trying to find jobs even after retraining. A stronger push for place-and-train programmes might be what these workers find useful.”
Another labour MP and an MP for Tanjong Pagar GRC, Melvin Yong, points out that jobs are still available but the challenge is with job-matching.
“With better coordination, we can increase awareness of where the available jobs are, “ he says.
Although all seven MPs interviewed say there has not been a significant spike in the number of residents asking for financial assistance, they are also wary of an impending recession, and whether sufficient measures are in place to help them.
“The people who will be hardest hit are those who have been retrenched and still have significant loan repayment obligations, like homes,” says Choa Chu Kang GRC MP Yee Chia Hsing.
“Prevention is better than cure, so we need the economy to grow. As such, we must be careful that we do not overtighten foreign labour supply.”
Lee is also hoping that the Budget rolls out measures to help households cope with the slowdown, for instance, vouchers to offset the cost of public utilities.
For some workers like Sally Ho, 35, the key to surviving a slowdown is dialling down her expectations.
She left her bank officer job last year to join a medical solutions company. Though she took a 50% paycut, the new job is less demanding on time as a mother of two.
“It means eating out less, and not feeling envious when your former colleagues go on expensive holidays or buy a new bag,” she said.
“If you can do that, life may be a little tough, but overall, still fulfilling.” — The Straits Times/Asia News Network
Related:
Experienced engineer trying for months to get a job
Related posts:
Ponzi schemes and modern finance Andrew
Sheng says when the originator of a scheme to pass on debt to others is
also ‘too big to fail’ – ...
