EMPLOYMENT SITUATION,

Third Quarter 2014

Manpower Research and Statistics Department

Singapore

October 2014

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is acknowledged. Request for extensive reproduction should be made to:

Director
Manpower Research and Statistics Department
Ministry of Manpower
18 Havelock Road #05-01
MOM Building
Singapore 059764
Republic of Singapore
Fax: 63171804
Email: mom_rsd@mom.gov.sg

Manpower Research and Statistics Department

MISSION

To provide timely and reliable

national statistical information on the labour market
to facilitate informed decision-making within the government and community-at-large

Statistical activities conducted by the Manpower Research and Statistics Department are
governed by the provisions of the Statistics Act (Chapter 317). The Act guarantees the
confidentiality of information collected from individuals and companies. It spells out the
legislative authority and responsibility of the Director, Manpower Research and Statistics
Department. The Statistics Act is available in the Singapore Department of Statistics website
at www.singstat.gov.sg.

Employment Situation, Third Quarter 2014

Contents
Page
NOTATIONS AND ABBREVIATIONS

HIGHLIGHTS

vi

EMPLOYMENT SITUATION, THIRD QUARTER 2014

Overview
Unemployment
Employment
Redundancy

1
1
2
3

EXPLANATORY NOTES

iv

A1

Employment Situation, Third Quarter 2014

Notations
P

Q
M
J
S
D
n.a.

:
:
:
:
:
:
:
:

Nil or negligible
Preliminary
Quarter
March
June
September
December
Not applicable/not available

Abbreviations
CPF : Central Provident Fund
MOM : Ministry of Manpower
SSIC : Singapore Standard Industrial Classification

Employment Situation, Third Quarter 2014

HIGHLIGHTS

vi

Preliminary estimates showed that the overall seasonally adjusted unemployment

rate held steady over the quarter in September 2014 (1.9%), and the rates for
residents (2.8%) and citizens (2.9%) were unchanged.

Overall employment growth in the third quarter of 2014 (27,100) remained largely
similar to the previous quarter (27,700), though it slowed from a year ago (33,100).

There were 3,577,000 persons in employment in September 2014. This was 3.6%
higher than a year ago. This rate of increase over the year was lower than the
3.8% in June 2014.

Redundancy rose in the third quarter of 2014, reflecting the impact of

restructuring. Some 3,400 workers were laid off, up from 2,410 workers in the
preceding quarter and 2,710 in the third quarter of 2013.

Employment Situation, Third Quarter 2014

Overview
The job market remained tight, as unemployment for residents and citizens stayed low and
steady, and employment growth matched the previous quarter. Meanwhile, layoffs
increased, reflecting the impact of restructuring.

Unemployment
Unemployment stayed steady and low
Preliminary estimates showed that the overall seasonally adjusted unemployment rates
dipped from 2.0% in June 2014 to 1.9% in September 2014, while the rates for residents and
citizens were unchanged over the quarter at 2.8% and 2.9% respectively.
Chart 1: Unemployment Rate
(Seasonally Adjusted)
Rate (%)
6

0
Overall
Resident
Singapore Citizen

S10 D10
2.1 2.2
3.1 3.1
3.3 3.3

M11
1.9
2.8
2.9

J11
2.1
2.9
3.0

S11 D11 M12

2.0 2.1 2.0
2.9 2.9 3.0
3.0 3.0 3.2

J12
2.0
2.8
2.9

S12 D12 M13

1.9 1.8 1.9
2.8 2.7 2.8
3.0 2.9 2.9

J13
2.0
2.9
3.0

S13 D13 M14

1.8 1.8 2.0
2.7 2.7 2.9
2.8 2.8 3.0

J14
2.0
2.8
2.9

S14
1.9
2.8
2.9

Source: Labour Force Survey, MOM

p

: Preliminary

An estimated 52,600 residents, including 46,700 Singapore citizens were unemployed in

September 2014. The seasonally adjusted figures were 62,500 for residents and 55,400 for
citizens.

Employment Situation, Third Quarter 2014

Employment
Employment growth largely unchanged from the previous quarter
Overall employment growth in the third quarter of 2014 (27,100) remained largely
unchanged from the previous quarter (27,700), though it slowed from a year ago (33,100).
Services (23,500) continued to generate the majority of employment gains, higher than the
third quarter in 2013 (18,500). Meanwhile, construction (3,400) and manufacturing (300)
grew more slowly than a year ago (construction: 10,700, manufacturing: 3,300).
There were 3,577,000 persons in employment in September 2014. This was 3.6% higher
than a year ago. This rate of increase over the year was lower than the 3.8% in June 2014.
Chart 2: Employment Change By Sector
Number (000)
50

40

Total
30

Services

20

10

Construction

Manufacturing
-10

Employment
Level
in Sep 2014P

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14P

Total

20.5

33.9

28.3

24.8

31.9

37.6

27.2

31.7

26.2

44.0

28.9

33.7

33.1

40.6

28.3

27.7

27.1

3,577.0

Manufacturing

0.2

-2.5

0.5

0.5

3.9

-1.4

2.0

4.7

3.7

0.9

-1.2

2.3

3.3

0.9

-1.4

-2.1

0.3

537.1

Construction

0.3

1.4

2.3

4.6

6.7

8.4

8.7

9.7

9.7

11.1

8.4

8.5

10.7

7.6

4.7

4.4

3.4

489.6

Services

19.7

34.5

25.4

19.3

21.2

30.2

15.8

17.3

12.7

31.2

21.1

22.7

18.5

31.8

24.9

25.2

23.5

2,523.7

Source: Administrative Records

P

: Preliminary

Note:
(1) Data for the three major sectors do not add up to the total as the latter includes Agriculture, Fishing, Quarrying, Utilities
and Sewerage & Waste Management.

Employment Situation, Third Quarter 2014

Redundancy
Layoffs rose, reflecting impact of restructuring
Redundancy rose in the third quarter of 2014, reflecting the impact of restructuring. Some
3,400 workers were laid off, up from 2,410 workers in the preceding quarter and 2,710 in the
third quarter of 2013.
Services formed the majority (1,900 or 56%), followed by manufacturing (1,300 or 38%) and
construction (200 or 5.9%).
Chart 3.1: Redundancy
Number of Workers
14,000

12,000

10,000

8,000

6,000

4,000

2,000

0
Redundancy
Early Release of Contract Workers
Retrenchment

3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14P
1,930 3,190 2,750 2,020 1,960 3,250 2,600 2,210 2,850 3,350 2,120 3,080 2,710 3,660 3,110 2,410 3,400
490

710

370

390

560

320

320

250

420

360

120

260

320

330

520

390

400

1,440 2,480 2,380 1,630 1,410 2,940 2,280 1,970 2,430 2,990 2,010 2,820 2,390 3,320 2,590 2,010 3,000

Source: Labour Market Survey, MOM

P

: Preliminary

Notes:
(1) Data pertain to private establishments each with at least 25 employees and the public sector.
(2) Data are rounded to the nearest 10. Hence, they may not add up due to rounding.

Employment Situation, Third Quarter 2014

Chart 3.2: Redundancy By Sector

Number of Workers
4,000

3,500
3,000

Total

2,500
2,000

Services

1,500
1,000
500
0

Manufacturing
Construction
P

3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

Total
1,930 3,190 2,750 2,020 1,960 3,250 2,600 2,210 2,850 3,350 2,120 3,080 2,710 3,660 3,110 2,410 3,400
Manufacturing 970 1,370 1,440 600
710 1,300
770 1,660 750
520 1,200 1,580 680 1,630 1,250 1,430 820
Construction
170
690
310
410
100
240
260
180
140
70
130
250
260
480
400
280
200
Services
790 1,120 1,010 1,020 1,050 1,360 1,580 1,510 1,510 1,690 1,300 1,190 1,200 1,740 1,890 1,420 1,900

Source: Labour Market Survey, MOM

P

: Preliminary

Notes:
(1) Data pertain to private establishments each with at least 25 employees and the public sector.
(2) Data for the three major sectors do not add up to the total as the latter includes Agriculture, Fishing, Quarrying,
Utilities and Sewerage & Waste Management.
(3) Data are rounded to the nearest 10. Hence, they may not add up due to rounding

Explanatory Notes
Employment Situation, Third Quarter 2014

Unemployment

Source
Labour Force Survey
Coverage
The survey covers private households in Singapore. It excludes workers living in construction worksites,
dormitories and workers quarters at the workplace and persons commuting from abroad to work in Singapore.
Estimates of the total labour force are derived by combining data on residents (also known as locals) obtained
from the survey with foreign workforce data compiled from administrative records.

Concepts and Definitions

Unemployed persons refer to persons aged 15 years and over who did not work but were actively looking and
available for work during the reference period. They include persons who were not working but were taking steps
to start their own business or taking up a new job after the reference period.
Unemployment rate is defined as the percentage of unemployed persons to the total number of economically
active persons (i.e. employed and unemployed persons) aged 15 years and over.

Uses and Limitations

The unemployment rate is probably the best-known measure of the labour market. It measures unutilised labour
supply and is useful in the study of the economic cycle as it is closely related to economic fluctuations.
Unemployment can have frictional, cyclical and structural elements. As it takes time for job seekers and
employers to find a match, there is always a certain level of frictional unemployment due to people changing jobs
and from new entrants looking for work for the first time. Unemployment can also be structural e.g. arising from a
mismatch between the job seekers and the job openings available. With structural unemployment, even if job
vacancies and job seekers coexist in the labour market, they may not be matched over a long period of time.
Finally, unemployment can be cyclical. This occurs when there is a general decline in demand for manpower as
aggregate demand for goods and services fall in the event of a cyclical downturn. Unlike structural and frictional
unemployment where the problem is in matching job openings with job seekers, cyclical unemployment occurs
when there are not enough jobs to go around.
Unemployment can vary due to changes in demand or supply of manpower. It can decline if more people
succeed in securing employment or when the unemployed persons stop looking for a job and leave the labour
force either temporarily (e.g. to take up training) or permanently (e.g. to retire). Conversely, unemployment may
rise due to increase in labour supply from new entrants or re-entrants to the labour market. It will also rise if more
people quit their jobs to look for alternative employment or if there is an increase in layoffs.

A1

Employment Situation, Third Quarter 2014

Employment

Source
Primarily from administrative records. The self-employed component is estimated from the Labour Force Survey.
Coverage
The employment data comprise all persons in employment i.e. employees and the self-employed. However, it
excludes men who are serving their 2-year full-time national service liability in the Singapore Armed Forces,
Police and Civil Defence Forces.
Data on the number of local (also known as resident) employees are compiled from the Central Provident Fund
(CPF) Boards administrative records of active contributors defined as local employees who have at least one
CPF contribution paid for him/her. A local (also known as resident) employee is any Singapore citizen or
Permanent Resident who is employed by an employer under a contract of service or other agreement entered
into in Singapore. Every local employee and his/her employer are required to make monthly contributions to the
CPF which is a compulsory savings scheme to provide workers financial security in old age and helps meet the
needs of healthcare, home-ownership, family protection and asset enhancement.
Data on foreigners working in Singapore are compiled from administrative records of foreigners on valid work
passes issued by the Ministry of Manpower. Foreigners can work in Singapore only if they have valid work
passes issued by the Ministry of Manpower.
The number of self-employed residents is estimated from the Labour Force Survey. The self-employed
comprises persons aged 15 years and over who are own account workers, employers or contributing family
workers.
Concepts and Definitions
Employment change refers to the change in the number of persons who are in employment, derived by taking
the difference in the employment level at the end of the reference period compared with the end of the preceding
period. A positive change refers to the additional number of persons who are in employment, while a negative
change refers to the decline in number of persons in employment.
Uses and Limitations
Analysis of employment change over time helps in understanding the impact of cyclical and structural changes in
the economy on the demand for workers. In particular, the breakdown of employment by industry helps identify
sectors where employment is growing or falling.
Conceptually, the change in employment over the reference period is the difference between people entering and
exiting employment during the period. Users should not mistake an increase in employment as gross job
creation.

A2

Employment Situation, Third Quarter 2014

Redundancy

Source
Labour Market Survey

Coverage
Before 2006, the survey covers private sector establishments each with at least 25 employees. From 2006
onwards, the survey also includes the public sector comprising government ministries, organs of state and
statutory boards.

Concepts and Definitions

Redundancy comprises retrenchment and early release of contract workers due to redundancy.
Retrenchment refers to the termination of employment of a permanent employee due to redundancy. In the
public sector, it includes those who left service under the Special Resignation Scheme that allows redundant
non-deployable Civil Service or Statutory Board employees to leave their organisations with compensation.
Early release of contract workers refers to employees on term contracts which were terminated prematurely
because of redundancy.

Uses and Limitations

Data on redundancy are useful in the analysis of re-structuring or ailing industries.
The number of persons made redundant (flow) should not be confused with persons unemployed (stock). Not all
persons made redundant will be unemployed as some will re-enter into employment or decide to leave the
workforce.

A3

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