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Recovery in the job market strengthened in
third quarter, supported by the robust economic growth in the first half of
the year. Employment saw its longest sustained period of expansion, outlasted
only by the recovery from the Asian crisis. |
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The strong employment creation has led to a
significant decline in unemployment. This coupled with a rise in job vacancies
led to a marked improvement in the ratio of job openings to job seekers. |
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The economy added 14,100 workers in the third
quarter of 2004, up from 10,900 in the second quarter. This marked the fifth
consecutive quarter of gains, bringing the total number of persons employed to
2,173,800 as at September 2004. |
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Manufacturing employment posted accelerated gains
of 8,500 (2.0%). After rising for four straight quarters, the sector has
regained nearly all the losses it had suffered since 2001. |
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However, construction continued to shed workers
(-1,700, -0.7%), but at a slower pace than before. |
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Employment in the services-producing industries
reached a new high, adding 7,100 (0.5%) workers in the third quarter. The
increase was seasonally lower than in the second quarter as temps leave the
workforce after the mid-year sales and school vacation. However, the third
quarter’s increase was more than double that of the same period a year ago
(3,000, 0.2%). |
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The strong employment creation has led to a
significant decline in unemployment. The seasonally adjusted overall
unemployment rate fell to 3.4% in September 2004 from 4.5% three months back
while the corresponding resident rate was 3.9% and 5.0%. |
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This improvement brought the unemployment rate to
around the level in 1999 when the economy started recovering from the Asian
crisis but it exceeded the pre-crisis low of around 2.0%. An estimated 62,200
residents were unemployed in September 2004. The seasonally adjusted figure
was 69,700. |
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The substantial improvement in job prospects has
reduced the pool of long term unemployed. Only 14,500 unemployed residents
have been looking for work for at least six months, significantly lower than
the 27,700 a year ago. |
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The resident long term unemployment rate in
September 2004 was 0.8%, down from 1.6% a year ago, but it was still higher
than the pre-Asian crisis average of 0.3% (or around 4,000). |
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Retrenchment has eased further amid an improving
job market. 1,9671 workers were retrenched in the third quarter of 2004, a
reduction of 4.3% from the previous period. |
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Based on CPF records, 63% of the locals retrenched
in the second quarter 2004 found re-employment by September 2004 (within 6
months after retrenchment). The re-employment rate has broadly held up after
the marked improvement to 64% in June from 51% in March 2004. |
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Private sector job openings numbered 18,9001
in September 2004, the highest in three and a half years. The rise in job
openings and fall in job seekers led to a substantial improvement in the
seasonally adjusted ratio of job vacancy to unemployed persons to 42p
job openings for every 100 job seekers in September from 29 for every 100 in
June 2004, at the aggregate level. Nevertheless, the ratio remained
substantially below the more than 200 openings for every 100 job seekers
registered before the Asian crisis. |
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The strong economic rebound has benefited workers,
reducing even the pool of long term unemployed. Nevertheless, structural
unemployment remains a concern as businesses continue to restructure and
evolve, driven by advances in IT connectivity and rising competition.
Supported by the festive boost, employment is likely to rise further in the
fourth quarter. |
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However, the underlying growth momentum is
expected to ease as the Singapore economy transits to a slower rate of growth
amidst the anticipated slowdown in global IT demand and weaker growth in the
world economy. |
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For More Information |
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The Manpower Research and Statistics Department
has published the report on “Labour Market, Third Quarter 2004”. The 46-page
report provides an update on the state of the labour market in the third
quarter of 2004. The report is available online at the Ministry of Manpower’s
website:
http://www.mom.gov.sg/mrsd/publication. |
P Preliminary
1 Data pertain to private sector establishments each with at least
25 employees |
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Source:
Ministry of Manpower Press Release 16 Dec
2004 |
Singapore Labour Market Report - 3rd Quarter 2004
