The Monetary Authority of Singapore (MAS) announced that Singapore will enter a recession in 2020.

The projected economic growth is set to dip below the forecast range of -4 to -1 per cent and this will be the worst-ever contraction on record, the MAS added.

Following which, the Ministry of Manpower reported the preliminary estimates of the early impact of Covid-19 on the labour market on April 29.

Total employment contracted sharply in 2020 Q1

In the first quarter of 2020, the total employment, excluding foreign domestic workers (FDWs), registered its "sharpest quarterly contraction since SARS", according to the MOM's labour market advance release.

The contraction of 19,900 is, however, due to a significant decline in foreign employment.

Employment contractions were observed across manufacturing, construction, and services sectors.

Consumer-facing food and beverage services and retail trade, as well as tourism-dependent accommodation, were most affected by the economic impact of Covid-19.

The contractions in the consumer-facing services were offset by increases in healthcare, public administration and professional services.

But those who remain employed might experience a reduction in working hours and wages.

Overall unemployment rate at around 2.3%

Overall, the unemployment rates have increased over 2020 Q1 in March at around 2.3 per cent to 2.4 per cent.

Unemployment rates among Singapore citizens range between 3.3 per cent to 3.5 per cent.

For now, the unemployment rates remain lower than the highs seen during SARS (4.8 per cent overall and 6.4 per cent for citizens) and the Global Financial Crisis (3.3 per cent overall and 4.9 per cent for citizens).

There is an increase in overall retrenchments in 2020 Q1 as compared to last quarter, from 2,670 to 3,000.

This number of retrenchments is still significantly lower than the quarterly peak during the Global Financial Crisis at 12,760 in 2009 Q1.

The budget relief measures could have cushioned the overall impact, especially on local jobs, the ministry added.

However, the labour market conditions are likely to worsen in the next quarter as firms adjust to circuit breaker measures and in light of the sharp fall in demand globally.

The Minister for Manpower, Josephine Teo, urged employers to cut costs and not jobs, and to consult the employees and unions before resorting to layoffs.

The government is committed to sustain businesses and protect livelihoods as Covid-19 situation evolves, citing wage offsets under the Jobs Support Scheme, programmes to reskill workers as well as job-matching SGUnited Jobs initiative.

Top photo by Andrew Koay