Labour market shows encouraging improvement - Report

According to the Economic Outlook 2023 report released by the Finance Ministry today, as the economy transitions towards endemicity, the vibrancy of the business operations had stimulated aggregate labour demand thus creating more job opportunities in the market.

The positive improvement in the labour market was also depicted by the declining retrenchment numbers which dropped significantly by 48 per cent to record 18,076 persons as of end-June 2022.

"The trend has returned to the pre-pandemic level as industries retained workers to accommodate the increased business activities," the report said.

Meanwhile, the report also stated that job vacancies had doubled to over 508,000 positions in June 2022 compared to around 258,000 in the same period last year.

It said the labour market is anticipated to improve further in the second half of the year amid stronger demand for workers by businesses and industries in meeting domestic and external demand expansion.

"As a result, the unemployment rate is expected to continue its decreasing trend to record between 3.8 per cent to 4 per cent for the whole of 2022.

"Total employment is projected to expand by 1.6 per cent to 15.3 million persons, with the services sector being the major contributor to employment at 65.1 per cent, mainly in the wholesale retail and trade subsector, as well as accommodation and food and beverages services," the report said.

The reopening of the country's borders beginning April 1, 2022, and the finalisation of the memorandum of understanding with the respective resource countries had also eased the hiring and mobility of migrant workers to the country.

Hence, the number of registered low-skilled foreign workers increased by 12.5 per cent reaching 1.2 million persons as at end-August 2022 as compared to 1.1 million persons in the same period last year, it said.

"Meanwhile, the number of expatriates increased by 5.5 per cent to 86,023 persons as at end-June 2022 as compared to 81,539 in June last year," it added.