News: Restrictions due to Delta variant may disrupt Singapore's labour market recovery


Restrictions due to Delta variant may disrupt Singapore's labour market recovery

In the wake of increased COVID-19 restrictions due to global rise in Delta variant infections, SG's labor market recovery might be halted along with compromised foreign labor flow.
Restrictions due to Delta variant may disrupt Singapore's labour market recovery

In the aftermath of the Covid-19 pandemic and a sudden rise in the number of Delta variant cases globally, Singapore reinforces stern restrictions and suspension from hiring from high-risk countries. Incoming foreign workers will feel the hit more than others. 

After the Covid-19 outbreak, Singapore has been witnessing ups and downs in the employment industry. According to the Manpower Ministry, despite a surge in employment rates and decline in unemployment for a short while (in the previous month), it is quite improbable that the employment industry will achieve its pre-pandemic figures. According to a recent report on preliminary estimates by the Manpower Ministry, the gross employment, excluding migrant domestic employees, has reduced drastically, that is by 15, 700 during the second quarter of 2021.

MOM revealed a 9% decline in company's' hiring plans from 74% in March to around 64% in June. Experts say, the decline in hiring sprees might be to maintain cash reserves, they went down due to prolonged pandemic. In fact some companies might be exploring cost cuts and headcount reductions to keep afloat. 

Talking about the employment trends and statistics, Aubeck Kam, Permanent Secretary for Manpower revealed that the resident employment witnessed a little overall growth, while a decline in non-resident employment. He further revealed that the decline in foreign employment has been aggravated due to increased public health restrictions in the wake of COVID19 pandemic.

Samuel Gan, Senior Vice-President for capital markets at Digital Securities Exchange ADDX, had mixed views over the present employment industry scenario. Gan thinks, the unemployment is not likely to rise, owing to continuous ongoing vaccination drives and comparatively less restrictions. But with the growing numbers of Delta variant cases and easing off of Government support measures, employment will continue to be circumspect. 

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Topics: Recruitment, #Jobs, #Hiring

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