Award Banner
Award Banner

Thousands of jobs in Singapore may go in next 6 months, say experts

Thousands of jobs in Singapore may go in next 6 months, say experts
People at a job fair held by the National Trades Union Congress' Employment and Employability Institute at Chong Pang Community Club last month. Retrenchments more than doubled in the second quarter of this year, with 6,700 workers laid off, up from 3,220 in the first quarter, and this is only the tip of a large iceberg, warned observers.
PHOTO: The Straits Times

Workers have so far been sheltered from the full impact of pandemic by substantial govt support

There is a limit to what the Government can do to cushion the weakening job market, said observers, who expect tens of thousands of jobs here to be cut within the next half a year, when the full impact of the Covid-19 pandemic will be felt.

Measures that have staved off retrenchments, such as the recently extended Jobs Support Scheme (JSS) that helps offset part of the wages of local workers, draw heavily on the country's reserves, added experts, who fear the intensity of layoffs will build up for a while.

Aviation, tourism, retail, hospitality, entertainment, food and beverage, marine and offshore, and construction will be hit hard.

Their views echoed those of Deputy Prime Minister Heng Swee Keat, who in a ministerial statement on Aug 17 said that retrenchments will be inevitable despite the Government's best efforts. He added that the JSS cannot be sustained at current levels.

Labour experts said workers have so far been sheltered from the worst economic effects due to substantial government support.

National University of Singapore senior economics lecturer Kelvin Seah said: "Nobody knows how long (the pandemic) will last. There is too much uncertainty. It will depend on whether countries are able to contain the virus effectively."

The outlook remains uncertain and not just within Singapore, said the Ministry of Manpower (MOM). It added that the impact of the pandemic and the mitigation measures were not fully felt in the first quarter of the year.

"We are now starting to see the deeper impact of Covid-19 on the labour market," MOM said.

Read Also
Parliament: 5,280 Singapore citizens retrenched between January and June
singapore
Parliament: 5,280 Singapore citizens retrenched between January and June

National Trades Union Congress (NTUC) deputy secretary-general Cham Hui Fong said: "Within the unionised sector, we are witnessing an increase in the number of retrenched workers, especially during these few months, as compared to last year."

The pandemic will be long drawn and business volumes for many sectors will be unable to recover for a while, she said. Some firms would have no choice but to resort to layoffs after exhausting other cost-cutting measures.

Retrenchments more than doubled in the second quarter of this year, with 6,700 workers laid off, up from 3,220 in the first quarter. This was higher than the peak of 5,510 during the 2003 Sars outbreak, but below the 2009 global financial crisis high of 12,760. And this is only the tip of a large iceberg, warned observers.

Last month, labour chief Ng Chee Meng said he expects job losses to rise in the next six to 12 months as the economic impact of the pandemic becomes widely felt.

Dr Seah noted that layoffs typically do not happen right after businesses see a fall in their profits.

"Although businesses might be losing money, they may still try to retain workers," he added. "If profits continue to fall for a sustained period, then companies have little choice but to lay off workers. Some of these businesses may not even survive themselves."

When firms in key sectors like aviation and tourism fare poorly, "there will be a domino effect since these people suffer a fall in income", Dr Seah pointed out.

The aviation and aerospace sectors have been badly hit by Covid-19, with air travel crippled by border closures and airlines grounding planes. Aerospace giant Pratt & Whitney, aircraft manufacturer Airbus and engine maker Rolls-Royce are among major firms that have cut staff here due to declining business.

The impact has trickled down to other businesses, including Resorts World Sentosa and Millennium Hotels and Resorts, which have also retrenched workers here.

Read Also
lifestyle
5 ways Singaporeans can protect themselves from potential retrenchment

Mr David Leong, managing director of human resources firm PeopleWorldwide Consulting, said most affected sectors are running at sub-optimal capacities and conditions.

"The industries that depend on footfall, face-to-face human traffic are the ones that are critically crippled," he added. "This may take half a year to go by before we can see any modest signs of recovery."

Mr Paul Heng, managing director of NeXT Career Consulting Group, pointed out that there will always be job cuts - including from business units moving out of the country and mergers and acquisitions. The pandemic has just necessitated more.

But retrenchments will always be a last resort, said Ms Cham, adding that embattled businesses would first implement cost-cutting alternatives such as a shorter work week, no-pay leave and wage cuts.

Unions and associations said they have been busy working with firms in recent months in an effort to save as many jobs as possible.

For instance, the fintech industry is not spared from the economic fallout of Covid-19, said Singapore FinTech Association president Chia Hock Lai. A recent survey by the association found that over a quarter of its members had reduced manpower, although many indicated that the downsizing was temporary.

Mr Gilbert Tan, chief executive of NTUC's Employment and Employability Institute, which offers training and job matching for Singaporeans who have lost their jobs, said it will continue to hold job fairs to offer opportunities to those affected.

Singapore Human Resources Institute president Low Peck Kem advised workers to quickly bounce back if they can, including taking on gig work or reaching out to different industries.

"The longer you stay unemployed, the more difficult it is to go back to the workforce," she added.

This article was first published in The Straits Times.

For the latest updates on the coronavirus, visit here.

homepage

trending

trending
    'It's very embarrassing': Sharon Au recounts faking her marriage in 2014
    St Joseph's Church stabbing: Accused given additional charges of being in possession of weapon
    Is roti john from Singapore or Malaysia? Radio DJs spark debate
    Pinnacle@Duxton sets new record with $1,502 psf after 4-room unit sells for about $1.52m
    From Spain to Singapore: Spanish performance brand Cupra relaunches in Singapore
    Laid to rest: Barbie Hsu's ashes interred, Wheesung funeral's condolence money to be donated
    Lee Si-young to divorce after 8 years of marriage
    From improv to tech start-ups: Here's how this Singaporean draws inspiration to make a positive change
    'It all burned': Food stall in Malaysia catches fire after rain falls on hot oil
    Strong winds in Hong Kong leave gondola worker 'hanging' in mid-air
    Government committed to making young parents' journey 'smooth and fulfilling', says PM Wong during Sengkang visit
    Singapore's harmony is precious and must always be cherished and protected: PM Lawrence Wong

Singapore

Singapore
    • 'Deliberately confrontational': Shanmugam calls out activists for disrupting PAP's meet-the-people sessions
    • Ex-Kinderland teacher gets jail for abusing children in her care
    • GE2025: 5 hot wards to watch
    • Suspected gang boss, who ran gambling dens in Geylang, arrested in Malaysia after 4 years on the run
    • Long delays at Woodlands checkpoint: Over 2-hour wait as school holidays start
    • Man to be charged for abusing airline staff and kicking wall at Changi Airport over lost phone
    • 'Spectacular sight': SM Lee shares stunning photo of rare sun halo over Singapore
    • SM Lee unveils future improvements in Ang Mo Kio, calls for residents' continued support
    • From serving passengers to taking flight: How an ex-SIA flight attendant fulfilled her dream of becoming a pilot
    • Keep off the tracks: SMRT issues warning after man climbed over barriers at Boon Lay MRT station to retrieve phone

Entertainment

Entertainment
    • Tay Ping Hui says acting in China was a 'super humbling experience'
    • Kim Soo-hyun admits to dating late Kim Sae-ron, refutes allegations she was underaged
    • Ya Hui toughs it out in new job as creative director: 'I'm not a flower you need to take care of'
    • 'Where am I supposed to say I'm from?' Jackson Wang addresses controversial clip of him saying 'I'm Chinese'
    • Die-hard Singapore fan recalls serenading Lady Gaga in LA, moving her to tears: 'That moment means the whole world to me'
    • Cassie Ventura expecting baby boy
    • Justin Theroux and Nicole Brydon Bloom married
    • Sir Elton John struggling to sign autographs after losing vision in right eye
    • Liam Payne fans dedicate commemorative bench in Buenos Aires cemetery
    • Ellen Pompeo says she won't let her daughter watch Grey's Anatomy

Lifestyle

Lifestyle
    • 2 Singapore pizzerias earn spots on 50 Top Pizza Asia-Pacific 2025 list
    • Luckin Coffee launches Maltese-themed drinks and limited-edition merchandise as part of collaboration
    • 23 local attractions offering SG60 deals, here's what Singaporeans can enjoy
    • Hunt the Mouse is back, with $100k worth of coins hidden at Sentosa waiting to be found
    • The one passion that drives this teen robotics whiz to keep innovating
    • All-new Skoda Superb Combi unveiled
    • The truth about dual-key living in Singapore: What 3 homeowners want you to know
    • Toyota Camry review: A classic nameplate that vastly amps up the luxury and fun factor
    • Dear teachers, I owe you an apology: Lessons I learnt as a parent
    • Neta X review: Affordable Chinese EV with more than a few flaws

Digicult

Digicult
    • A $500 wake-up call: How the Samsung Galaxy Ring made me realise my stress
    • Monster Hunter Wilds producer explains how game has remained unique and fresh over 20 years
    • China's Baidu launches 2 new AI models as industry competition heats up
    • China's top universities expand enrolment to beef up capabilities in AI, strategic areas
    • International Women's Day: Meet the Singapore women levelling up in gaming
    • US indicts slew of alleged Chinese hackers, sanctions company over spy campaign
    • Meet the women powering innovation in tech in Singapore and beyond
    • Games in March: JRPGs, co-op games and wrestling
    • Australia fines Telegram for delay in answering child abuse, terror questions
    • Embracing the future: A personal guide to how to get started with artificial intelligence

Money

Money
    • Amid AI push, DBS to cut 4,000 temp jobs over next 3 years
    • Singapore's economy grew 4.4% in 2024, beating forecasts
    • DBS to give staff $1,000 special bonus, introduce capital return dividend
    • Travel insurance for infectious diseases: What you need to know (2025)
    • Best bank offers in Singapore (March 2025): Lady Gaga concert presale, up to 50% off flights and more
    • How high will Singapore property prices get in 2025? Here's what AI predicts
    • Before you say 'I do' to a home: The checklist every newlywed couple needs in Singapore
    • Are older HDB maisonettes and jumbo flats worth the premium? A deep dive into pricing trends
    • This newly MOP-ed 4-room HDB flat at Bidadari sets new record with almost $800k profit
    • Chocolate Finance imposes $250 spending limit on debit card to manage demand for miles rewards

Latest

Latest
  • Rights group files lawsuit to block Trump deportations of pro-Palestinian protesters
  • Daily roundup: Strong winds in Hong Kong leave gondola worker 'hanging' in mid-air — and other top stories today
  • Foreign CEOs to flock to China for key summit, Xi meeting, sources say
  • Trump administration weighs travel ban on dozens of countries, memo says
  • Cockroaches and working in a closet: Inside Trump's return-to-office order
  • India's Modi says Trump has 'clear roadmap' in second term
  • Germany pledges $435m in aid for Syrians at EU conference
  • Thousands gather in Rio de Janeiro to demonstrate support for Bolsonaro
  • Trump says will speak with Putin on Tuesday to discuss ending Ukraine war

In Case You Missed It

In Case You Missed It
  • Malaysian woman stunned to find car trapped among diners after car park turns into outdoor eatery at night
  • Johor invests $1.5b in water treatment infrastructure to reduce dependency on Singapore after 2030
  • Ceiling collapses at KSL City Mall in JB, viral videos show
  • Food poisoning outbreak: 187 cases linked to Total Defence Day ready-to-eat meals, probe underway
  • Blazing car on Nicoll Highway: 1 dies, 2 taken to hospital
  • FairPrice giving away 75,000 sets of snacks and drinks to Muslim customers to break fast
  • Disabled Malaysian boy seen 'walking' with hands in school gets walkers from kind donors after TikTok video went viral
  • CDL's Kwek Leng Beng seeks to fire son Sherman as CEO over alleged 'attempted coup'
  • 10-year-old girl hurt by pebbles thrown from condo's 11th storey by toddler
This website is best viewed using the latest versions of web browsers.