S'pore jobless rate rises to 2.3% in June
The weakening economy is starting to hurt jobs.
Thu, Jul 31, 2008
Reuters
The weakening economy is starting to hurt jobs.
Singapore's jobless rate rose to 2.3 per cent in the second quarter after seasonal adjustments, compared to 2 per cent in the first three months, in line with expectations of rising unemployment amid a slowing economy.
For the second consecutive quarter, the overall unemployment rate rose from a seasonally adjusted 1.7 per cent in December to 2 per cent in March and further to 2.3 per cent in June, according to preliminary estimates released by the Manpower Ministry on Thursday morning.
There were also fewer jobs in the second quarter.
Employment rose by 70,600 from April to June, lower than the 73,200 in the earlier quarter.
But the job situation is still better than second quarter a year ago when employment grew by 64,400.
Economists have expected Singapore's jobless rate to rise above 2 per cent in the second quarter as firms hold off hiring plans amid choppy financial markets and weaker economic growth.
Driven by the robust expansion in building activities, the construction industry contributed 22,100 jobs in the second quarter this year, substantially higher than the quarters before.
'Outside of construction, employment growth has moderated from the previous quarter,' said the ministry.
Services added 37,600 workers in the April to June period, down from the gains of 46,500 in the previous quarter but still slightly higher than 36,800 in the second quarter of 2007.
Manufacturing posted gains of 10,200, down from the increase of 11,800 in the first quarter.
Fewer retrenched
After rising for two consecutive quarters, retrenchment eased in the second quarter to about the same level as a year ago.
The estimates show that 1,900 workers were retrenched in the second quarter, down from 2,274 in the previous quarter.
The slowdown in retrenchment came from manufacturing which laid off 1,300 workers, while the service industries also shed 600 jobs, from 543 in the first quarter.
The increase among the resident labour force was from 2.4 per cent in December 2007 to 2.9 per cent in March, and 3.1 per cent in June 2008.
The prevailing overall and resident unemployment rates are at the same levels as a year ago in June 2007.
Singapore's trade-driven economy shrank an annualised and seasonally adjusted 6.6 per cent in the second quarter, its biggest contraction in five years, as exports to the key US and Europe export markets tumbled.
