Singapore Unemployment Rises to 16-Year High

Singapore’s overall unemployment rate in the third quarter rose to 3.6%, the highest since 2004, reflecting the sustained challenges to its economy from the coronavirus pandemic.

A median 3.7% was forecast in a Bloomberg survey before the data Friday from the Ministry of Manpower.

Singapore Unemployment Rises to 16-Year High

The Monetary Authority of Singapore said earlier this week that the city-state’s recovery will likely be “gradual and uneven” and that the labor market is expected to “only expand gradually” next year. The central bank sees the economy contracting by 5% to 7% this year.

Singapore has deployed about S$100 billion ($73 billion) in fiscal stimulus, including wage subsidies and rent relief, as well as longer-term efforts to digitize business and retrain retrenched workers. Policy makers have signaled that they plan further fiscal support in the upcoming budget, to be released early next year.

©2020 Bloomberg L.P.

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