May 30, 2009

CDCs help more find jobs

WITH the economy in a tailspin, 27,200 people sought help from community development councils (CDCs) to find jobs during the first four months of this year, an increase of more than two times from about 13,200 during the same period last year.
According to latest released figures from the Workforce Development Agency (WDA), successful job placements too are on the rise.

Thanks to the collective efforts of the five CDCs here and the Employment and Employability Institute or e2i, NTUC's job training and placement arm, 10,500 job seekers were placed between January and the end of April. For the whole of last year, the CDCs managed to place 13,000 job seekers.

Islandwide, about six in 10 of the registered job seekers at CDCs are above the age of 40, and seven in 10 have secondary qualifications and below.

To cope with the surge in those seeking jobs, the five CDCs have beefed up both the range and frequency of their career outreach programmes.

Since January, South East CDC has held 'mobile recruitment drives' by setting up booths at MRT stations to target those in need of a job but not sure where to get help.

The North East and Central Singapore CDCs have begun outreach efforts to tap potential employers. CDC officers have been combing neighbourhood malls and offices to source for jobs.

So far, the North East CDC has garnered more than 330 vacancies, mostly in food and beverage and retail.

- The Straits Times

May 26, 2009

Home Team promotes 2,494 officers and seeks to recruit another 1,500

A total of 2,494 officers from the Home Team received their promotion certificates on Monday from Law Minister, K Shanmugam.

The Home Team Promotion Ceremony was held to recognise deserving officers who had shown the potential to take on greater responsibilities for the overall safety and security of Singapore.

The Home Team had embarked on an aggressive drive to recruit up to 1,500 officers.

So far, it has already employed about 500 of them in the first quarter of this year alone, a two-fold increase compared to the same period last year.

Mr Shanmugam, who is also Second Minister for Home Affairs, also revealed that the ministry has leveraged on online media platforms to recruit good candidates, such as Facebook and YouTube.

He also said there will be a new educational sponsorship scheme for applicants to study at polytechnics.

The Home Team is also looking at ways to re-employ officers who are fast approaching the retirement age.

Those who are deserving and are able to meet the demands of the job will be re-employed for a further five years.

Those who are unable to meet certain criteria may be offered employment on civilian schemes.

- Channel News Asia

May 15, 2009

Hiring at ION continues

ABOUT 2,000 people will show up from now till Sunday to network with employers and go for interviews, in hopes of landing one of 3,000 jobs at ION Orchard.

The retail-cum-superluxe residential complex launched one of the final stages of its massive job hunt on Thursday at Raffles City, in partnership with the Employment and Employability Institute (e2i) and the Workforce Development Agency.

e2i and the WDA took charge of pre-screening the 5,000 applicants, and sent them for training such as service booster courses before the jobseekers met employers on Friday.

Twenty-three brands such as Bebe, TopShop and Cold Storage had set up booths to interview prospective employees as well as promote their companies to the jobseekers.

At this round of sessions, there are 1,500 jobs to fill, mostly frontline or senior positions.

The other 1,500 jobs will be offered through ongoing e2i job fairs that are held twice a month.

Club 21's human resource director Rina Ong said the unique job-matching fair would save her time and effort from the usual hiring process. 'Usually, you have people looking for jobs, including a whole barrage of people just trying their luck,' she said. 'This is much more concentrated and focused.'

Such a screening-cum-job fair method seems to be working well for e2i, said its chairman Ong Ye Kung. He described how in the past, it had organised mass job fairs, but those became a huge 'pasar malam' (night market) and were too noisy and difficult for employers to find proper staff.

It had also tried small boutique events, but too few people found jobs through them, despite the amount of work put in.

This screening-then-interview method was a 'good balance', he said.

- The Straits Times

May 13, 2009

StanChart to hire 100 private wealth managers

BANKING giant Standard Chartered will hire 100 private bankers over the next 12 months, despite a weak hiring forecast for the financial sector.

The British-listed lender, which has a major presence in Singapore, aims to bolster the presence of its wealth management arm in fast-growing markets across Asia, Europe and the Middle East.

Although StanChart declined to elaborate further, a bank source said most of the new hires will probably be based in Asia, with the remaining going to Europe and the Middle East.

The global head of its private bank unit, Mr Peter Flavel, said yesterday that despite the challenging economic climate, the bank is in good shape, allowing it to grow and support the increasing needs of its clients.

'As we're seeing a continuing increase in client demand for our private banking services, we will continue to invest in attracting talent to further strengthen our proposition,' said Mr Flavel.

He added that the bank is looking for talented people who possess excellent track records and would be consistent in meeting the expectations of its high net worth clients.

'We are here to meet clients' needs. To achieve this, we need a certain type of relationship manager - someone with exceptional people and advisory skills, a strong team player, commitment to building long-term partnerships with clients.'

StanChart bucked the trend of the banking sector by reporting that profits for last year had soared 19 per cent to a record US$4.8 billion (S$7 billion).

About 100 relationship managers out of its private bank's worldwide total of 350 are based in Singapore, its global headquarters.

The bank's move to beef up its wealth management unit goes against the grain of employment forecasts for the banking and finance sector.

Last week, a report from the recruitment group Kelly Services Singapore said the finance industry, which saw major retrenchments in recent months, has seen the 'most significant' change in its hiring strategies.

It said financial institutions have adopted a 'more cautious recruitment approach owing to the weaker Singapore economy and the global financial turmoil'.

- The Straits Times

CIMB-GK to hire 35 grads under MAS plan

CIMB-GK Securities will hire about 35 fresh graduates under the new Finance Graduate Immersion Programme started by the Monetary Authority of Singapore (MAS).

Chief executive Carol Fong told The Straits Times yesterday: 'We believe we are the first brokerage under this scheme. It's a win-win situation. If not for the MAS scheme, I would think twice before hiring fresh graduates in such big numbers.'

The scheme involves the MAS subsidising the pay of new graduates hired by the financial sector, to spur employment during the downturn. The one-year programme has a budget of $15 million.

CIMB's decision to hire the graduates is part of its aim to double the size of its retail business by next year. It plans to add about 100 staff to its base of 300 remisiers and dealers by next year. The graduates will be channelled to equity sales, research and compliance positions.

- The Straits Times

Good news for finance, accounting job seekers

THINGS may start looking up by the end of the year for finance and accounting industry workers, according to a survey by Morgan McKinley.

Fifty-three per cent of employers in Singapore believe that financial and accountancy recruitment will start to increase before year-end, the survey found.

Conducted in March this year, it polled 120 senior human resources and hiring managers in financial services and other commercial organisations.

Although the outcome suggests a note of optimism, the managing director of Morgan McKinley Singapore, Jeremy Canning, said: 'Given business' current focus on cost-savings and efficiency, it is likely to be a steady rise over several months rather than an overnight surge in hiring activity.'

Despite lower hiring levels right now, there is still demand for professionals in niche markets, Mr Canning said.

'In Singapore at the moment, there is still some demand within the wealth management space, as well as in risk and technology from both financial institutions and industry,' he said.

If Singaporeans can hold on a little longer, the finance and accounting industry may bounce back up and spur demand for professionals in the field, according to those surveyed.

Almost nine out of 10 employers believe that there will be an increase in demand for financial services and accountancy professionals within the next 18 months.

The survey also provided some interesting insights into employer perceptions on salaries.

Despite the increased competition in the market for fewer jobs, basic salaries are likely to remain as they are.

Seventy-three per cent of employers polled expect basic salaries offered to new recruits to their business to remain the same in 2009.

This is because 81 per cent of these employers believe that it is just as difficult (47 per cent), if not more difficult (34 per cent), to find the right candidate for a job than it was a year ago.

The survey also found that employers are positive about their own staffing plans for the rest of this year.

Fifty-one per cent expect their firms' recruitment activity to remain at current levels while 29 per cent expect it to increase in 2009.

- The Business Times

May 12, 2009

MDA to add 10,000 jobs

SINGAPORE'S next generation of digital media whizzes are being grown with money from a $500 million fund that has gone into building digital classrooms, as well as promising commercial ventures by start-up companies and MNCs.

And now, funding will also go to research projects by companies in digital media, the Media Development Authority (MDA) said yesterday.

In the last two years, money from the Interactive Digital Media Programme Office (IDMPO) has helped 120 start-ups, and provided seed money for 68 other companies.

Funds have also gone to 64 schools and educational institutions to help them enhance teaching through digital media.

Among them was a project by the National Institute of Education to develop a multi-player game on mobile phones that would facilitate learning.

Started in 2006, the IDMPO aims to fuel the growth of interactive digital media and its research and development (R&D). To be disbursed over five years, it has more than six funding schemes now.

MDA revealed where the money had gone at yesterday's Computer Games, Multimedia & Allied Technology (CGAT) conference but would not say how much had been given.

It hopes to fuel the growth of the media sector from $4.7 billion in 2005 to $10 billion by 2015, and add 10,000 jobs.

'Singapore has a chance to create the next breakthrough in media,' said Mr Michael Yap, deputy CEO and programme director of IDMPO, at the event.

Interactive digital media can encompass the areas of gaming, next generation Web and mobile technology, to name a few.

First Meta, a virtual credit card company in virtual worlds like Second Life, received funding in 2007 for R&D and manpower. Founder Aileen Sim said it saved her a lot of the heartache that most start-ups face.

'The money allowed us to do up prototypes and other costly research. It also opened doors to investors, who saw us as more credible,' said Ms Sim, who added that her company's monthly revenue has hit the mid six-figures now.

With funding from IDMPO, it is currently working on converting virtual game currency into money that can be used in real life.

Mr Yap also announced that firms can start applying for new, additional funding for its latest initiative, Future of Media.

The money is to encourage companies to innovate and conduct research on next-generation media applications in television, mobile phones, virtual worlds or three-dimensional Web, books and games. MDA will accept and fund 50 to 100 companies to work on each 'future' field.

It wants to work these future services and applications into its massive virtual city, Co-Space, first launched about a year ago as its answer to Second Life.

IDMPO is a testament to how funding can water growth.

Between September 2007 and September last year, applications from start-ups applying for seed money of up to $50,000 leapt threefold.

- The Straits Times

May 11, 2009

NTUC to expand, hire

THE labour movement's 12 social enterprises are going on the 'offensive' during the downturn - by expanding operations and hiring more local workers.

There are 1,200 jobs on offer, ranging from cashiers to childcare teachers.

Explaining the expansion plans, labour chief Lim Swee Say said on Monday that 'bad times are the best times' to build up capabilities and stay competitive.

For instance, its supermarket chain NTUC FairPrice is opening five new stores this year and its childcare cooperative, First Campus, plans to add 30 centres by next year.

Even before the growth, group revenue from the social enterprises rose to $5.6 billion in the financial year that ended in March, a rise from $5 billion in the previous year.

But the push to ramp up is not just profit-driven.

Mr Lim said the National Trades Union Congress' (NTUC) 12 social enterprises are keen to do their part to save and create jobs, and offer affordable goods and services, because the economic crisis may not be abating.

'The global economy is showing signs of recovery, and some speculate that the worst is behind us,' said Mr Lim, NTUC's secretary-general.

'But the labour movement does not share that optimism.'

Mr Lim, flanked by the chief executives of the 12 social enterprises at a media conference, was sharing plans of how they can 'do more good' this year.

When asked why he preferred to be pessimistic, he said: 'It's not that I'm not happy, but I'm cautious about being complacent.'

- The Straits Times

The storm isn't over yet, says labour chief

Labour chief Lim Swee Say has warned workers to brace themselves for a possible second wave of retrenchments.

He was speaking to reporters at a job fair on Monday.

"I think the first quarter was very bad for the manufacturing sector. The second quarter, we saw some positive signs. The question is, whether these positive signs can last through the third quarter and beyond. We are holding our breaths in looking at what's happening in the second quarter. But our greater concerns are the third and fourth quarters," he said.

Some 9,000 workers in the manufacturing sector lost their jobs in the first quarter, mainly from the electronics industry with the unemployment rate rising to 3.2 per cent.

Mr Lim stressed that the local labour movement does not believe the recession is ending soon, despite some experts saying that the economy may have gone through its worst patch.

"We continue to see job losses in USA. We continue to see unemployment rates going up in USA. While the world may be starting to gamble with their money in the stock market, here in Singapore, we cannot afford to gamble the job of workers. What we have to do is to continue to stay on course. We continue to commit to this policy of retrenchments as a last resort," he said.

He added that these gloomy times also present the best opportunity for businesses to expand.

Not only is it now more cost effective to do so, Mr Lim said, the recession has also made it easier for companies look out for suitable candidates to join their payroll.

- 983LIVE

May 7, 2009

Jobless woes in webchat

THE plight of older workers and the unemployed featured prominently in an online dialogue with Manpower Minister Gan Kim Yong on Thursday night.

Participants suggested the Government give companies incentives to hire older workers, provide unemployment insurance to the jobless and let those in dire financial straits draw on their Central Provident Fund (CPF) savings, among other things.

Mr Gan, in his response, dwelt at length on various government policies, explaining why it was better, for instance, to help companies redesign jobs for older workers: 'While we want to encourage firms to employ older workers, we also have to ensure not to create too much rigidity.'

As for insurance and the use of CPF savings, Mr Gan explained why it was better to give the jobless training and support them with an allowance.

Also, it was better to preserve CPF savings for old age, he added.

Engaging him during the 90-minute e-Townhall webchat were about 30 people, including students, executives and businessmen, who posed questions on employment issues and the effectiveness of government help schemes to save jobs.

The Government's feedback arm, Reach, had organised the online forum to gather feedback on Prime Minister Lee Hsien Loong's May Day Rally speech, as well as suggestions on helping workers.

At the prompting of Reach chairman Amy Khor, who is Mayor for South West District, some participants commented on the potential divides in Singapore society that PM Lee had raised in his speech.

These were: between Singaporeans and foreigners; between the more and the less successful; and between races and religions.

But the most spontaneous and rapid exchanges were on employment issues. One participant argued for unemployment insurance, but Mr Gan said it was better to help the unemployed get a job so that 'they can move on'.

- The Straits Times

May 6, 2009

WDA, e2i embark on recruitment drive for ION Orchard

SINGAPORE: The extensive recruitment exercise for the 3,000 job vacancies in the ION Orchard shopping mall has kicked off with a search to immediately fill up to 1,500 positions in the initial recruitment phase on Wednesday.

About 20 per cent of the 1,500 positions are suitable for professionals, managers, executives and technicians (PMETS) and fresh graduates.

Of the 1,500 vacancies, some 70 per cent will be for retail positions and 30 per cent will be in the food and beverage sector.

The recruitment is done in partnership with the NTUC's Employment and Employability Institute (e2i) and the Workforce Development Agency (WDA). E2i's role is to reach out to the public and invite interested jobseekers to attend the job fairs.

At the fair, the e2i employability coaches will identify suitable jobseekers who possess the right aptitude for the jobs, and enroll them for suitable training to acquire relevant skills.

The tripartite collaboration also extends to efforts to enhance local workers' customer service skills and to boost the overall image and professionalism of Singapore's service industry.

The partners will be providing successful candidates with the certified service professional training developed by WDA.

The training programme will cover service quality, etiquette, grooming and interpersonal skills to further enhance the candidates' service competency prior to their employment by ION Orchard. The training programme is recommended for all successful candidates hired through the recruitment initiative.

As at 6pm on Tuesday, some 3,000 job seekers have registered via sms, e2i's website and hotline.

Jobseekers who are looking for a career at ION Orchard may continue to register online or call the e2i hotline at 6474 3777. Registration closes at 6.00pm on Thursday.

- Channel News Asia

Don't 'retrench and hire'

THE usual practice of retrenching workers in a downturn and hiring new ones in an upturn will not work as the economy becomes more knowledge-based, said labour chief Lim Swee Say.

'At the company level, you are going to lose a lot of experience, a lot of skill and more importantly you are going to lose a lot of time, because it takes time to hire new workers, to retrain new workers,' he said on Wednesday.

'And if you are in a knowledge-based economy, the time needed to retrain new entrants will be much longer compared to a labour-intensive operation.'

Speaking to more than 2,000 human resource managers and executives at a Human Resources summit on Wednesday morning, he cautioned that the repercussions of a 'retrench-and-hire' practice will go beyond the company.

'At the level of the economy, this will lead to a massive relocation of workforce and at the national level, it could lead to a rise in structural unemployment.'

Mr Lim urged HR practitioners to play their part in getting their companies to focus on 'reskilling, upskilling and multi-skilling' their existing workers.

He also related his meetings with the management of three different companies, all of whom told him they were thinking of ways to cut jobs to save costs.

But on their minds too were longer-term concerns such as upgrading workers, retaining talent and recruiting new blood to refresh the leadership, so as to stand ready to ride the upturn in the economy.

'From manufacturing to services, form hotels to factories to banks, they all face the same challenge: On the one hand, how to be cheaper to survive today. On the other hand, how to be better to grow tomorrow,' he said.

The two-day HR Summit 09 at Suntec Singapore features more than 70 motivators, business experts and human capital specialists.

- The Straits Times

May 4, 2009

Budget's focus on jobs paying off

THE decision to focus this year's Budget on saving jobs was the right move as its key planks have helped temper job losses and cut the cost burden on employers.

And while the Government's emphasis going ahead will remain focused on saving jobs, Prime Minister Lee Hsien Loong yesterday said workers and union leaders must continue to play their part.

Speaking at the annual May Day Rally, he outlined how the Government had and would continue to help on the jobs front.

One approach has been through the Jobs Credit scheme which subsidises a company's wage bill for local workers; and the Skills Programme for Upgrading and Resilience which pays part of workers' wages while they are on training.

A second has been to go on the offensive and create new jobs and capabilities.
The Integrated Resorts, for example, are already recruiting workers.

Also, the Economic Development Board (EDB) has brought in new projects and got existing companies to expand.

'Almost every week, some new plant is opening or doing ground-breaking,' PM Lee said, citing instances of facilities being built by health-care firms Abbott Laboratories and Baxter Bioscience, as well as energy giant Renewable Energy Corporation.

Trade and Industry Ministry leaders have been kept so busy gracing these occasions that he, too, has chipped in by going to 'one or two' openings.

'It's important because it shows that the jobs are still available and if you are prepared to make the effort, there are many opportunities.'

PM Lee has also been meeting investors: 'I can help the EDB persuade them to do more in Singapore. I can understand from them how their business is, what more they will like us to do to help them.'

Investors said they remain confident about Asia's prospects and are impressed with how the Government and the people are responding to the downturn.

They also see Singapore playing a bigger role in Asia and in their business in Asia, he said, noting that many have plans to invest and are recruiting.

Noting that he has often been asked what more the Government can do, he said the decision to focus on jobs in the Budget Package is paying off.

It helped buffer the sharp drop in output in the first three months of the year. So, while gross domestic product shrank by 11 per cent, unemployment rose from 2.5 per cent to 3.2 per cent.

Singapore also did not suffer huge layoffs and a sharp rise in unemployment as seen in the United States and elsewhere.

And while there have been job losses in some sectors, the job banks at the Employment and Employability Institute (e2i) and Community Development Councils are substantial, with over 20,000 vacancies and counting.

'In this environment today, four months after the Budget, I believe that the right emphasis is still focusing on jobs - getting our people ready for the jobs, marrying up people with the jobs, helping them to help themselves,' he said.

On what Singaporeans can do for themselves, he advised those with a job to try their best to hang on to it: 'Don't resign, go on holiday and then think of something else. Make sure you keep your feet steadily on the ground, preserve your position before you look for another possibility.'

They should also go for training, be flexible and accept shorter work-weeks, compulsory time-off and wage cuts.

As for the unemployed, he urged them to take the first job they can find: 'You may hope to land something better later on, but nobody can say whether the economy is going to be better or worse.'

Also, go for training and try something new, he advised.

On his recent visits to the e2i in Redhill Road and other training centres, he was cheered to meet job seekers - young and old, professionals and rank-and-file - who were serious about being trained.

At one class, job seekers learnt to make a pitch about themselves for job interviews at the Marina Bay Sands Integrated Resort. Such training appears to have worked, as 1,300 of the 1,800 applicants for jobs at the resort were successful.

But PM Lee noted there are job seekers who still adopted a wait-and-see attitude. At a recent job fair organised by the e2i, only one-third of those who were invited to attend turned up: 'That's risky, because if having been trained, you don't get a job promptly and practise your skills, you will lose those skills.'

- The Straits Times

Career kit to help PMET casualties

THE job sector has claimed its fair share of casualties in recent months. Professionals, managers, executives and technicians, or PMETs, in particular, have had plenty to worry about.

Since last November, the North East Community Development Council (CDC) has noted a fivefold jump in the number of PMETs seeking employment assistance - from an average of 40 a month to 200 now.

PMETs now form close to a quarter, or 23 per cent, of all retrenched Singaporeans.

In response, the North East CDC and the Workforce Development Agency have published a career kit targeted at helping this group with their job search.

The 19-page handbook offers job search tips, advice and a one-stop directory for online job portals and search firms.

It was launched yesterday at Tampines North Community Centre, during the bi-monthly Head Hunters Programme organised by the North East CDC.

During the programme, participating PMETs are interviewed by job firms for potential employment positions, and are also given the opportunity to network with their peers.

Mr Zainul Abidin Rasheed, Senior Minister of State for Foreign Affairs and Mayor of North East District, was the guest of honour at the launch.

Speaking of these challenging times for PMETs, Mr Zainul said: 'The challenge now is to ensure that we have enough jobs, and to keep our people employed.'

Ms Brenda Lim, North East CDC's centre manager added that the kit is a way to place job seekers on the right path.

'Hopefully, with this book, more professionals will be more focused and guided in their job search.'

Former IT consultant Melvin Tan agreed. The 39-year-old was retrenched last August, and received a copy of the kit yesterday.

'It contains really useful tips,' he said. 'For one, I now know that my cover letter and resume need a total overhaul.'

Mr Zainul added that this partnership between job seekers and agencies is a 'potent combination'.

'That way we can not only help them, but also help them help themselves.'

The career kit will be available to the public at all five CDCs by next Friday. A soft copy of the kit will also be available at www.northeastcdc.org.sg

- The Straits Times

May 3, 2009

Grants to help boost hiring

TWO new measures to help local workers get jobs and stay employed will cost the Government $100 million over two years.

One will give companies a grant of up to $400,000 to hire and hang on to trained workers.

This programme is called Spur-Jobs, which is an add-on to the existing Skills Programme for Upgrading and Resilience (Spur) that subsidises the training of local workers, including permanent residents.

It will cost is about $50 million. The other measure will cost $50 million too and is under Spur as well.

It is for the programme that allows employers to claim from the Government a substantial part of a worker's salary when he goes for training.

This is the absentee payroll scheme and it has been enhanced to let employers claim a bigger amount from May 15.

Both new measures were announced at a May Day rally on Friday by Prime Minister Lee Hsien Loong and on Sunday, the Ministry of Manpower (MOM) released details of the changes.

Elaborating on them last night, Manpower Minister Gan Kim Yong said the money would come from the $650 million allotted to Spur last December.

If necessary, he will ask the Finance Ministry for extra funds, Mr Gan told reporters ahead of a community event.

In its statement, MOM said that for Spur-Jobs, a company can also claim a grant of up to $3,000 to offset the cost of hiring and training each worker.

- The Straits Times

May 1, 2009

19,000 jobs awaiting

LABOUR chief Lim Swee Say has this advice for the 30,000 job seekers in Singapore: There are still jobs out there.

Speaking at a May Day Rally on Friday, Mr Lim said there are some 19,000 jobs still available, out of which 8,000 pay above $2,000 a month, in the e2i job gallery.

Opened in 2007, the e2i is part of a national masterplan to equip workers with skills to stay employable amid changing economic conditions. It was set up by the National Trades Union Congress (NTUC) in partnership with the Singapore Workforce Development Agency (WDA), and others.

Mr Lim, who is the NTUC secretary-general, said while there are close to 10,000 job seekers registered with the institute, it has not been able to match them yet.

The reason: Many are either not equipped with the right skills yet, while others have high expectations.

'Our challenge then is to narrow the skills gap, the expectation gap and the mindset gap,' said Mr Lim.

But he also noted that there are others who have shown the willingness to learn and adapt, and many jobless have been re-employed again. About 70 per cent of those retrenched last year have found jobs again.

'Some are job ready and they just need encouragement,' he said.

Latest figures figures showed that overall unemployment here rose from 2.5 per cent last December to 3.2 per cent last month, with 95,600 people out of work.

'Even though retrenchment has gone up in the first quarter of 2009, it could have been worse,' if not for efforts by the government and tripartite collaborations, Mr Lim told the gathering.

'Our tripartite efforts in cutting costs to save jobs have made a real difference in containing the first wave of retrenchment. There was no runaway, massive retrenchment,' he added.

But the second wave will come, he said, striking a cautious note. 'The road is still long and winding. So let's be prepared and continue to cut costs and save jobs.'

- The Straits Times

Singapore unemployment rises to highest in 3 years

Singapore's unemployment rose to the highest in over 3 years in the first quarter as the economy suffered its worst ever recession, but manufacturers are turning less bearish on prospects for the next six months.

The unemployment rate rose to 3.2 percent on a seasonally adjusted basis, the highest since the third quarter of 2005 and rising from 2.5 percent at the end of 2008, as the manufacturing sector shed jobs, government data showed on Thursday.

The unemployment rate among the resident labour force rose to a 5-year high of 4.8 percent in the first quarter from 3.6 percent in the fourth quarter.

"Unless the recovery is swift, further job losses probably lie ahead of us," said economist Wei Zheng Kit of Citigroup in a report on Thursday, adding unemployment this year could peak slightly under its forecast rate of 4.8 percent.

The manufacturing sector saw the largest contraction of employment in the first quarter of 2009 with a loss of nearly 20,000 jobs from the previous quarter. The sector laid off 9,000 workers, mainly in the electronics industry.

The construction and services sectors, however, saw an increase of 8,500 and 10,300 jobs respectively.

Unemployment is rising around the world as the global economic recession has wiped out demand for goods and services.

Singapore, Southeast Asia's most open economy and the first to enter recession in 2008, has been hit hard.

"Falling external demand has severely affected the manufacturing sector," the Ministry of Manpower said.

However, Singapore manufacturers have turned less pessimistic on their business prospects, a separate government survey showed on Thursday, as fewer anticipate a less favourable business environment in the next six months.

A net weighted 33 percent of manufacturers said they expect business conditions to deteriorate in the next six months to September 2009, compared with 57 percent in the January survey, Singapore's Economic Development Board said.

Investors have taken comfort from signs the economic slump might be easing, leading to a rally in Asian currencies and world stocks on Thursday.

"It looks like money is coming to Asia now and we see the Singapore dollar is going to be strong in the next six to 12 months," said Johanna Chua, Citigroup's trading strategist in Hong Kong.

The central bank, which manages the Singapore dollar as its main monetary policy tool, said on Wednesday the worst may be over for Singapore's economy after its deepest ever contraction in the first quarter, but the outbreak of swine flu clouds the outlook for this year.

- Reuters