SINGAPORE’S unemployment rates fell across the board in August, but the Ministry of Manpower (MOM) warned of risks of an economic slowdown that could dampen the labour market.

Overall unemployment rate slid to 1.9 per cent in August; resident unemployment, to 2.7 per cent and citizen unemployment rate, to 2.8 per cent, according to MOM’s monthly unemployment situation report on Friday (Oct 7). All three rates were 0.2 percentage point lower than their levels in July.

The ministry noted that 64,800 residents were unemployed in August, among whom 57,600 were citizens.

This is the lowest level the unemployment rates have fallen to since March 2016. Unemployment figures used to be released on a quarterly basis until mid-2020, when the ministry said it wanted to track the situation more closely during the Covid-19 pandemic.

Nonetheless, MOM warned of weaknesses ahead as economic conditions appear to worsen, striking a markedly different tone from the month before when it noted the ramp-up in recruitment activity owing to the rebound in travel.

“While unemployment rates are currently lower than pre-pandemic levels, the increased risk of a slowdown amidst contraction of manufacturing activity, soaring inflation and interest rate hikes could dampen labour market activity,” the ministry said.

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Shortly before the pandemic hit, the average unemployment rates in 2018 and 2019 were 2.2 per cent at the overall, 3 per cent for residents and 3.2 per cent for citizens, MOM noted.

Singapore’s factory output expanded just 0.5 per cent in August, while the Purchasing Manager’s Index in September contracted for the first time in two years.