Singapore’s employment outlook remains cloudy even as economy mends

Resident unemployment rates also fell from 4.8% to 4.6%, while that for citizens dropped from 4.9% to 4.7% in the corresponding months. These figures are in line with a survey that shows that 19% of the employers intend to hire this quarter.

On the business side, many firms folded last year due to the fallout from the pandemic. However, the overall number of firms that closed shop fell to its lowest level in five years. 

According to Singapore’s Accounting and Corporate Regulatory Authority (Acra), 43,335 business entities went belly up last year, notably fewer than the 47,504 in 2019. It was the lowest number since 2016, when 60,750 were recorded. 

Data from the Law Ministry’s Insolvency Office website also showed that corporate insolvency numbers fell, with 206 applications filed for winding up between January and November last year, down from 368 in the same period in 2019. 

Market observers have attributed the drop in these numbers to government support and relief schemes which have played a part to soften the impact of the pandemic, thereby possibly stopping or delaying potential bankruptcies. 

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“There was unprecedented policy support last year and some of the support measures were extended into 2021, so that may have held the bankruptcy and liquidation number at bay, or possibly delayed the inevitable slightly,” said OCBC Bank chief economist Selena Ling. 

She added, “The test of the pudding will come when the support measures wind down. It would really depend on how strong is the pace of the recovery and the progress of the vaccination efforts,” according to The Straits Times.