Vacancies up; still, a note of caution

It is a strong indicator that the job market is showing a turnaround.

But even as the Manpower Ministry confirmed employment growth in the third quarter, Minister of State Lee Yi Shyan made caution the watchword.

"The unemployment rate is likely to stay up for some time, as employers remain cautious about the pace and sustainability of recovery," he said yesterday.

The question is: Will workers take note, given that total employment grew by 14,000 between July and September, enough to offset declines in the previous two quarters?

Job vacancies, too, were up 42 per cent from June to 34,900, only slightly below September 2007's figure. And the employment outlook for the fourth quarter moved further into positive territory, with a net weighted balance of 16 per cent of services firms expecting to increase headcount.

Last week, recruitment agency Manpower Inc's employment outlook survey showed that just over one in four employers here were looking to hire in the first quarter next year. And already, Singapore National Employers Federation executive director Koh Juan Kiat has noted that more workers have quit their jobs to take up better offers.

In these times, companies, too, are not as focussed as before on retraining, as one employer specialising in electronic goods admitted.

But apart from growth within the hospitality sector - on account of the integrated resorts opening early next year - CIMB-GK Research regional economist Song Seng Wun believes most employers will practice "selective hiring" as "it's not a broad-based recovery just yet".

And unionist G Muthu Kumar does not think many Singaporeans are aware more jobs are available, as many still think the job market is tight.

Some fresh entrants to the job hunt have not had it easy, either. Said Diyana Lubis, 21: "Job hunting is tough, especially in the design sector which I am looking at. Every interview I go for, it seems employers would rather hire me as an intern and pay me $200 than offer a full package."

Among residents who had been retrenched in the second quarter, half were re-employed within a quarter - an improvement from the record low of 43 per cent in the previous quarter, but still below the 62 per cent recorded a year ago.

Long-term unemployment doubled from 9,600 in September last year to 18,400.

- TODAY newspaper