Unemployment and layoffs declined amind stronger job creation in second quarter

Unemployment in Singapore has declined, reversing the slight increase a quarter ago. 

The Manpower Ministry (MOM) said this is thanks to more jobs being created in the second quarter of this year, while layoffs eased for the second successive quarter. 

These are the key findings from the "Labour Market, Second Quarter 2012" report released by the Ministry of Manpower's Research and Statistics Department. 

Total employment grew by 31,700 in the second quarter of 2012, higher than the gains of 24,800 in the same period last year and 27,200 in the first quarter of 2012. 

Cumulatively, employment rose by 58,900 in the first half of 2012, compared with the increase of 53,100 in the corresponding period of 2011. 

Services contributed the majority of employment gains in the second quarter of 2012 (17,300), though this eased from the same period last year (19,300). 

For the seventh successive quarter, growth in construction workforce (9,700) accelerated, supported by public infrastructure projects. 

In manufacturing, employment grew by 4,700, as gains led by petroleum, chemical & pharmaceutical products (3,500) outnumbered the declines mainly in electronic, computer & optical products (-500). 

MOM said amid the strong employment creation, unemployment declined in June 2012, after the slight rise a quarter ago. 

The seasonally adjusted overall unemployment rate dipped over the quarter by 0.1%-point to 2.0% in June, erasing the increase in March. 

The rate for residents and citizens declined by 0.2%-point to 2.8% and 3.0% respectively. 

The long-term unemployment rate was unchanged over the year at 0.7%. 

Some 15,700 or 20% of the unemployed residents had been looking for work for at least 25 weeks in June 2012, similar to 15,500 or 19% a year ago.

Layoffs fell for the second successive quarter, after rising in the fourth quarter of 2011. 

2,210 workers were made redundant in the second quarter of 2012, down from 2,600 in the first quarter of 2012 and 3,250 in the fourth quarter of 20111. 

Based on CPF records, three in five (60%) residents laid off in the first quarter of 2012 found a job by June 2012. 

This re-entry rate into employment within six months of redundancy rose from the 50% experienced by the previous cohort in March 2012.

Amid the subdued global economic outlook, the number of job vacancies declined over the year by 15% to 47,300 in June 20121. 

After adjusting for seasonality, job openings fell over the quarter by 8.9% to 45,600. 

This was the second consecutive quarter of decline after hitting the high of 55,400 in December 2011.