As determined by Singapore’s Manpower Ministry (MOM), unemployment rates for residents remain low despite its rise. The unemployment rate climbed from 2.7% to 2.9% in the first quarter of 2013. MOM released the initial findings from the report entitled “Employment Situation, First Quarter 2013”.
Tan Chuan-Jin (acting Manpower Minister) said that the minimal increase in unemployment did not affect the generation of jobs as a whole. In fact, he admitted that Singapore is generating more jobs they can hold. This is a good sign. This means that there is a lot of work to do. But there are factors that cannot be taken for granted. Factors influence the employment condition in Singapore. Factors include:
Weakness of the economy
Singapore’s economy is susceptible beginning from the Asian Financial crisis and the global recession in 2008. It is believed that when Europe, America, Japan and China hold back, Singapore will be compromised. But to date, the country’s economy is looking good.
Influx of foreign workers
The country is now tightening the influx of foreign workers to accommodate their locals. Some of Singapore’s workforce came from overseas. The chances of locals getting a job are low because of other foreign workers. The government is doing its best to convince companies to consider Singaporeans or locals in their hiring practices.
Policies are stricter now when it comes to foreign workers. For workers belonging to restaurants, shops and marine engineering firms, there will be a quota but there is no change in the manufacturing, construction and other process sectors. Aside from that, MOM will start to increase taxes for foreign workers belonging to the “S Passes” bracket which earns 2000 to 2200 Singapore dollars. The government is doing this to level the playing field for local workers.