This means unemployment is set to rise over the next few quarters, while salaries will grow at a much slower pace, said the Monetary Authority of Singapore (MAS) in its latest half-yearly Macro Economic Review, released on Tuesday.

Already, employers are turning cautious about hiring given the more uncertain outlook next year, the MAS added.

It cited the most recent Manpower Employment Outlook Survey, which showed that only a quarter of the 629 firms surveyed here planned to increase headcount in the fourth quarter. The rest mostly expected no change, although some were still uncertain and 10 per cent said they cut jobs.

Within manufacturing, the MAS believes hiring in petrochemicals and transport engineering 'should hold up relatively well', but electronics jobs will take a hit due to softening global demand for IT products and ongoing restructuring in the industry.

Several financial institutions have also announced retrenchments worldwide, which is likely to impact on Singapore as it is home to many multinational companies.

Even construction, a sector that is still growing at a healthy pace, may see weaker job growth as projects are delayed.

But selected industries such as hospitality and healthcare still have thousands of job vacancies that need to be filled, said the MAS. The integrated resorts and related firms will generate about 60,000 jobs over the next few years, while 7,000 jobs are expected to be created in healthcare over the next five years.

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