16 Aug Total job losses amongst Singapore Residents will reach 100,000 despite government support measures
FMG CEO Devadas forewarns on the employment landscape in Singapore as retrenchment and unemployment numbers continue to rise:
“FMG forecasts that total job losses amongst Singapore Residents will reach 100,000 even with government support measures by mid-2021.
First, these measures will cease or ‘taper’ off from July till and early 2021. This includes the plan to create 100,000 internships.
Second, consumer sentiment is likely to be subdued deteriorating the consumption multiplier, for personal purchases to begin with and then including big-ticket items such as demand for property.
Third, there will be an unavoidable rise in firm failures and a fall in firm formations. Taken together this creates a smaller employment base. FMG projects that an equal number may become underemployed. This is where they can only work part-time or do piecemeal work although they would like a permanent job.
Those fortunate to find jobs are likely to be placed on term-limited contracts as companies hedge their bets.
Finally, the number of structurally unemployed and discouraged workers will grow significantly creating a dependency burden on the social support system.
This will have to be strengthened to provide adequate support. Skills upgrading is important but not a ‘silver bullet’ solution to an economic crisis where the key factor is fall in both local and final demand.”