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Restructuring, softer economy main reasons for redundancies in 2015: MOM
BUSINESS restructuring and softer economic conditions are among the key reasons for redundancy in Singapore last year.
According to the Ministry of Manpower (MOM) on Wednesday, redundancies - which have been rising steadily since 2010 - rose to 15,580 last year, up from 12,930 in 2014.
There were 7.4 workers made redundant for every 1,000 employees, up from 6.3 in 2014, but still below recessionary highs of 11 in 2008 and 14 in 2009.
The redundancies came mainly from manufacturing and professional services as a result of the fall in global oil prices and a slowdown in marine and construction demand.
There were 8,550 professionals, managers, executives and technicians (PMETs) laid off last year, up from 6,530 in 2014.
Residents were less vulnerable to redundancy than foreigners. Their share of redundancies (58 per cent) remained lower than their two-thirds share in employment. The incidence of redundancy among residents (7.1 layoffs per 1,000 employees) was also lower than foreigners (7.7 per 1,000) in 2015.
Residents laid off from PMET jobs were mostly in their 40s (37 per cent) and 30s (32 per cent), while residents displaced from clerical, sales & service (38 per cent) and production & related jobs (59 per cent) tend to be older, in their 50s and over.
MOM said the re-entry rate dipped, but remained within a stable range. Even though more people were laid off, the unemployment rate remained low and job vacancies continued to outnumber job seekers. It said 81 per cent of residents who re-entered employment took three months or less to secure their new job, broadly similar to past cohorts.
MOM said it would continue to closely monitor the economic and labour market situation, and work with tripartite partners to strengthen employment support to help displaced locals re-enter employment.