Blame the hiring restrictions on foreign born non-resident professionals.
There was a slowdown in Singapore's job market in the previous quarter as the government ramps up efforts to limit foreign born non-resident professionals from the employment market.
According to Morgan McKinley, Singapore has seen 7% decrease in jobs and 17% decline in the number of people seeking employment in 4Q16 compared to the previous quarter.
Morgan McKinley Asia Pacific COO Richie Holliday said the hiring restrictions are a source of ongoing alarm for both employers and candidates. He noted that the restrictions mean that when organisations reach their quota, irrespective of their needs and the availability of qualified candidates, they are barred from hiring anyone but citizens and permanent residents.
More so, he mentioned that government’s populist hiring tack is at odds with economic realities, as Singapore lacks a robust domestic market and its employers rely on their ability to hire the best from around the globe.
“We’re hearing from candidates and employers on the ground that Singapore is becoming a less attractive place to do business because of the quota system”, said Holliday.
Meanwhile, the new quota system is not the only challenge Singapore’s employment market faces. Holliday pointed out that the cost of living is growing increasingly expensive, and it is home to strong wage inflation.
"Both factors are contributing to making Singapore a comparatively less attract ive hub for the financial services jobs," he said.
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