MAS Warns: Expect More Joblessness and Slower Salary Increases in 2016

Posted on Apr 27 2016 - 6:38pm by Redwire Singapore

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“Overall and resident unemployment rates are likely to rise slightly in 2016 alongside the weak cyclical conditions, intensifying industry reconfigurations in some sectors, as well as increasing skills mismatches within the resident workforce.”

The Monetary Authority of Singapore has warned Singaporeans to brace themselves for the possibility of higher joblessness this year.

This, it said, is due to lower labour demand and supply, which contributes to less job creation.

Wages are expected to grow at a slower rate.

The MAS forecasts that overall resident wages will grow at a moderate amount of between 2.5 to 3.0 percent.

However, wage increases will very according to industries.

In January this year, Manpower Minister Lim Swee Say announced that there was zero employment growth for locals (Singaporeans and Permanent Residents) in 2015.

Compared to that, 31,700 jobs were created for foreigners in the same year.

Despite the trend, Mr Lim said there was “no cause for panic”.

Wage growth in 2015 for residents was also put at between 3.0 and 3.5 percent.

 

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