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Is Singapore’s unemployment rate in a ‘Goldilocks’ state?

In economic terms, frictional unemployment and some labour turnover are necessary for a dynamic market, say economists.

    • Singapore’s seasonally adjusted overall unemployment rate stood at 1.9 per cent in June, while resident unemployment was 2.7 per cent.
    • Singapore’s seasonally adjusted overall unemployment rate stood at 1.9 per cent in June, while resident unemployment was 2.7 per cent. PHOTO: EPA-EFE
    Published Mon, Oct 23, 2023 · 05:00 AM

    ROBUST job creation has stoked inflation fears in the United States, while China is plagued by hordes of young people out of work. In contrast, Singapore has maintained an unemployment rate that, as Maybank economist Brian Lee noted, “remains near an eight-year low”.

    Is Singapore’s unemployment rate in a “Goldilocks” state, neither too little nor too much?

    “The tight labour market stems from factors such as a pandemic-induced shortage of foreign workers and last year’s ‘Great Resignation’ phenomenon,” he told The Business Times.

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