Singapore ranked 8th among OECD nations for high full-time employment rate

Singapore ranked eighth among OECD economies for a high full-time employment rate, according to Labour Force in Singapore Advance Release 2018 published by the Manpower Research and Statistics Department.

The employment rate for jobseekers between 15 to 24 years rose to 34.5 percent as compared to 34.1 percent in 2017 because the younger members of the workforce took up internships, vacation work and contract jobs.

According to the annual release, the country’s labor market did improve since June 2017 even though a few structural changes are required. An ageing population continues to be one of the major challenges for the labour force participation rate. A slower rate of population growth is expected to stagnate the resident labour supply.

In the last five years, the real median income has seen a growth as workers continue to earn higher incomes. The island-country saw a 3.5 percent per annum increase in real median income of full-time employed residents between 2013 and 2018 as opposed to 1.9 percent per annum rise in the five years prior to 2013.

For PMETs (Professionals, Managers, Executives and Technicians), the unemployment rate has moderated as more residents started to find work. However, the long-term unemployment rate for those over 50 did rise. The report suggests that the jobseekers in the age bracket of 50 years and above are facing challenges while returning to the active workforce. PMETs account for about 57 percent of the resident workforce. Unemployed PMETs however took more time to find work--especially those in their 30s and 50+.

Companies are increasingly adopting a short-term approach and hiring more contract workers instead of commiting to a longer time horizon. This change in the way hiring and retaining policies of companies are structured is because of global economic forces. The short-term strategy translates into a rise in the number of one-year contracts for workers.

The demands of new industries need to be met by the skills of the workforce. Together with unions, companies and workforce members, the Ministry of Manpower has set an agenda to help match Singaporeans with productive careers and enable the older members of the workforce who are willing and able to work, to continue contributing to the economy.