Chart of the Day: Singapore’s labour market buckles as escalating headwinds bite

Job vacancies hit record low.

Singapore’s labour market is deteriorating as businesses continue to grapple with slowing revenue growth and rising operating costs.

This chart from BNP Paribas shows that labour demand deteriorated sharply in 2015. Job vacancies fell to 2.4% of total employment at end-2015, their lowest level since 2013 and down from a peak of 3.2% in Q3 2014.

Meanwhile, the number of vacancies per unemployed person also dropped to their lowest level since late-2012.

“Revenues are under pressure from a strong SGD and slower regional growth. Meanwhile, rising wages and borrowing costs are further squeezing margins. Labour market data indicate firms are beginning to buckle under these twin pressures,” BNP Paribas said.

“While vacancies remain high by historical standards, employment demand has clearly corrected over the past year,” the report added.