Net loss of 6,200 jobs; workers are taking longer to find new jobs
By
Aaron Low, Political Correspondent
Applicants for positions at new mall Ion Orchard going through the second part of a recruitment exercise, where they got to meet potential employers. -- ST PHOTO: SHAHRIYA YAHAYA
THE latest quarterly labour market data paint as dismal a picture since Sars hit Singapore six years ago.
In the first three months of this year, there was a net loss of 6,200 jobs - far worse than the 1,000 estimated at end-April by the Ministry of Manpower (MOM).
Is there good news in labour report? Experts divided
ANALYSTS are divided over whether the Government's latest job market report is cause for celebration or a signal that things will worsen.
The Ministry of Manpower (MOM) report paints a bleak picture of the job market in the first three months of this year, the worst since the 2003 Sars outbreak.
Earnings also fell, unemployment rose and people took a longer time to get another job, said MOM yesterday when it released the finalised job market figures for the January to March period.
But the bleak picture came as no surprise to analysts, who pointed to the record 10.1 per cent contraction of the economy in the first quarter.
Because of that contraction, the economy lost more jobs than it created for the first time since the April-June quarter in 2003, when the economy ground to a halt due to the deadly and infectious respiratory disease Sars.
In the first three months of this year, a total of 12,760 workers were laid off, a 36 per cent rise from the last three months of 2008. This included the early termination of employment contracts.
On top of that, the number of job vacancies fell to 21,000, a 20 per cent decline from the previous quarter.
The result was an unemployment rate of 4.8 per cent for residents in March. This translates to 95,700 unemployed Singaporeans and permanent residents, one-third more than the 71,800 in December.
Unemployment among the total population, foreigners included, was 3.3 per cent, compared to 2.5 per cent in December last year.
To Barclays Capital economist Leong Wai Ho, the unemployment figures came in better than predicted. 'Given that we were expecting 9 per cent unemployment at one point, I'd say we have done pretty well,' he said.
Read the full story in Tuesday's edition of The Straits Times.
