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).
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.
Economics Professor Shandre Thangavelu of the National University of Singapore and DBS economist Irvin Seah believe there will be worse news in the quarters ahead.
Prof Thangavelu highlighted the doubling in the number of workers taking more than 25 weeks to find a job, a measure of long-term unemployment.
The MOM survey showed this more than doubled to 16,600 from 7,500 a year ago.
This indicates a rising mismatch between jobs and job seekers, said Prof Thangavelu, adding that long-term retraining and re-tooling of workers would be needed.
The MOM report also showed that just over half of those laid off in December found jobs in March - compared to the seven in 10 in the same period a year ago.
Mr Seah said that the labour market would weaken further, with the unemployment rate peaking only at year-end or in the first quarter of next year.
Another dismal outcome of the current recession: a decline in nominal wages, the first since 2003. The 3.7 per cent drop was a significant turn from the 2.4 per cent increase in the previous quarter.
Real wages, which factor in inflation, fell 5.8 per cent.
Economists attributed the lower wages to less overtime pay and more people working a shorter work-week as companies cut costs.
Mr Seah said it will take a while before wages start to rise again.
'Wages will pick up only when you see unemployment approaching full employment levels of around 2.5 per cent,' he said.
