LAYOFFS among unionised companies plunged by 70 per cent in the last three months compared to the first quarter, according to figures released on Friday. The number of workers on a shorter work week and those asked to go on no-pay leave temporarily has also fallen at the same rate.

However, labour chief Lim Swee Say, in releasing the figures, had a word of caution: It is still too early to celebrate as the employment outlook continues to remain uncertain for the remaining half of the year.

He reiterated that a second wave of layoffs in the second half of the year cannot be ruled out as some manufacturers have not received any orders beyond September. In fact, some companies have given the labour movement advance notice that they intend to retrench workers between next month and November, said Mr Lim, secretary-general of the National Trades Union Congress (NTUC).

He was speaking at a press conference to give an update on the job situation for the first half of the year, for the 1,000 companies with unions belonging to the NTUC. Ms Cham Hui Fong, NTUC's industrial relations director, added that the number of job cuts could exceed 1,000.

Mr Lim's cautionary note echoes earlier remarks made by Manpower Minister Gan Kim Yong, who said he does not expect a let-up in the jobless rate, which currently stands at 3.3 per cent.

The marked improvement seen in the job market between April and last month coincides with the second quarter surge in the economy of 20.4 per cent.

NTUC figures show layoffs fell to 1,406, from a record 4,744 in the previous quarter, a 70 per cent decline. >The number of workers on a shorter work week and on temporary no-pay leave also dropped by 70 per cent to 7,608, from 24,135 in the first quarter.

But the figures for the first half of this year show the number of workers on a shorter work week and temporary layoffs - 31,177 - is relatively high. It is more than double the 14,898 for the whole of 1998, during the Asian financial crisis.

Also, workers were on shorter work weeks for a longer period compared to past crises.

Mr Lim declined to project if the employment situation would worsen or improve in the third and fourth quarters, saying the global economic outlook remains uncertain. 'There is no clear visibility...Any attempt to forecast would not be credible,' he said.

Read the full story in Saturday's edition of The Straits Times

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