THE number of jobs created this year could hit a record high, said analysts.
But this peak hinges on the construction industry continuing to power ahead, said economist Song Seng Wun of CIMB-GK Research.
He foresees the economy creating around 280,000 jobs this year, beating last year's record 236,600.
However, the continuing boom in the construction industry will bring little cheer to local job-seekers. This is because they tend to shun construction jobs.
As of December 2006, foreigners took up three in five construction jobs. The figure is likely to be even higher now as the doors have since opened wider to foreigners.
Latest figures from the Manpower Ministry show construction adding 36,600 jobs in the first half of this year, more than double that a year ago.
However, in the two other major sectors - manufacturing and services - the picture is less bright.
Manufacturing jobs grew by 10,200 from April to June, down from 11,800 jobs in the first quarter, said the ministry's report yesterday on employment in the second quarter.
Services added 37,600 jobs, down from 46,500 in the earlier three months.
The downtrend is expected to continue, as figures released by the Economic Development Board and the Department of Statistics yesterday showed that employers in the two sectors are cautious about businesss prospects and hiring for the second half of this year.
Analysts attribute this to uncertainty about the global economy.
Higher inflation also deters them from hiring and adding to labour cost, said Singapore Manual and Mercantile Workers' Union assistant secretary-general Joseph Chua.
Responses from 70 manufacturers to a Singapore Manufacturers' Federation survey support this view.
Eight in 10 expect business to drop this quarter, and about as many expect no change in employment levels. Their businesses include electronics, and metal and machinery.
Federation spokesman Dennis Ng said: 'Everybody's cautious because of the inflationary cost of raw materials and high freight rates.'
On services, recruiting firms say hiring in banking and finance has dropped by some 30 per cent this year. Many are set to scale back expansion plans this quarter, a report by recruitment firm Hudson found.
As hiring in manufacturing and services slows down, the question is whether resident unemployment, which has been creeping up over the past six months, will worsen.
Labour economist Park Cheolsung said: 'We may see an upward trend because the global economic outlook is not very good at this moment.'
