Apr 30, 2010

34,000 jobs added in Q1

SINGAPORE employers added 34,000 workers to their payrolls in the first three months as companies step up hiring in tandem with the robust economic recovery.

This is the third quarterly increase after two quarters of decline in the first half of last year, said the Ministry of Manpower, which released the latest jobs update on Friday morning.

Q1's employment growth is still slightly lower than the 37,500 in the last quarter of 2009, which hit a seasonal high due to the year-end festivities. But the labour market has made a strong rebound from the same quarter a year ago when 6,200 jobs were axed due to the global economic downturn.

With the strong job gains, the seasonally adjusted overall unemployment rate dipped to 2.2 per cent in March - the lowest level since the first quarter of 2008 when the jobless rate was at 1.9 per cent, and 2.3 per cent in the fourth quarter of last year.

Among the resident labour force, the unemployment rate fell to 3.2 per cent from a revised 3.3 per cent last December and 4.8 per cent in the third quarter. The bulk of the Q1 employment gains continued to come from services which added 31,200 jobs, while manufacturing hired 3,400 more workers - for the second straight quarter after shedding workers for four consecutive quarters.

Construction hiring slowed down slightly, adding 800 workers, after 20 successive quarters of employment gains from Q1 of 2005. MOM said 1,600 workers were retrenched and 500 contracts were terminated prematurely during the first quarter, resulting in 2,100 workers made redundant from January to March.

- The Straits Times

Apr 25, 2010

Fewer laid off in 4Q; half of laid-off rehired

Fewer workers were laid off in the last quarter of 2009 compared to early part of the year, and redundancies stayed below previous recession levels, said the Manpower Ministry on Monday.

Some 2,220 employers lost their jobs in the fourth quarter, down for the third successive quarter.

For the whole year, over 23,000 workers - or 14 in every 1,000 employees - were made redundant, below previous recession levels of 33 and 26 per 1,000 employees in 1998 and 2001 respectively.

The numbers include those who were retrenched or had their contracts prematurely terminated.

Professionals, Managers, Executives & Technicians (PMETs) were especially hard hit, with 9,570 suffering job losses in 2009. This was up from 6,200 in 2008.

The bulk of lay-offs came in the manufacturing sector, where six in 10 workers faced the axe.

Of those laid off, Singapore residents formed six in 10 of them, about the same as in 2008, said MOM.

More than half of those who lost their jobs in the third quarter of last year were re-employed by the year-end.

The 52 per cent re-employment rate improved from the 43 per cent in June last year.

However, those who found jobs within six months of redundancy was still lower than in 2008.

Nearly two thirds of Singapore residents made redundant in the first three quarters of 2009 were re-employed by December.

The 65 per cent re-employment rate was lower than 2008's 77 per cent but comparable to previous downturns in 2001 (65 per cent) and 1998 (68 per cent).

More details can be found at http://www.mom.gov.sg/mrsd/publication.

- The Straits Times

Apr 13, 2010

NWC will be "cautiously optimistic" with recommendations: experts

Cautiously optimistic - that is what observers are saying about the next round of recommendations to be released by the National Wages Council (NWC).

Salary increments are expected to be around three to four per cent. But experts said workers should manage their expectations.

The signs of a rebound are all there, with a higher GDP forecast of between 4.5 and 6.5 per cent for 2010, higher tourism numbers and employment gains of 2.2 per cent in 2009.

This is in stark contrast to the economic situation in June last year when the National Wages Council last issued its guidelines.

In a rare move last year, the council issued fresh guidelines mid-term, reflecting the fluidity in the economy. It called for measures like wage cuts and shorter work weeks to help businesses save costs.

With the turnaround in the economy, the question is - will the guidelines this time round be less conservative?

Experts said companies should reward their workers for swallowing the bitter pill by restoring pay, but only for those which can afford to. That is because there is still a lot of uncertainty about how the second half of the year will pan out.

Executive vice president of Asia Pacific at Right Managament, Ronnie Tan, said: "Most businesses are looking at the second half of the year from a global perspective, particularly in the US, how the situation is going to be like.

"I think the larger economies seem positive, but until consumers start spending, the real solid recovery is going to be a question of timing."

Peter Lee, managing consultant at Remuneration Data Specialists added: "Companies doing well will be asked to reward their staff by restoring wage cuts, pay a sustainable wage increase and pay extras in the form of bonuses rather than hefty built-in increases."

Increments are also on the cards, but it will unlikely be broad-based as the NWC is expected to continue urging companies to raise the variable component of wages.

Fermin Diez, partner, Mercer, said: "What it means to an employee's point of view is that more pay is at risk and less pay is certain as a percentage.

"So let's say you're going to get a five per cent increase which includes restoring, it may be that you don't get the full five per cent in salary but what you get is maybe two or 2.5 per cent in salary and the rest goes into your bonus. But you have to earn the bonus.

"The employees don't necessarily like this idea and in fact they will rather much have base salary than none because inflation is still going up and if I get some salary increase below inflation, I'm still not keeping up with the cost of living, particularly if I was one of 2 or 3 who either got their salary either frozen or cut."

Companies will also need to grapple with the implications of restoring pay.

Mr Fermin Diez added: "If you restore, you have to make up two years. It's two years of wage increases - because restoring assumes you (had) cut (wages) and about a third of the companies in Singapore (had done that).

"About another third froze (salaries) which means another third still increased. There were wage increases during 2009. There are new wage increases for 2010 so anybody that cut or froze has to restore it and provide twice as much."

Talent retention will remain an issue as the job market picks up. Experts said companies should look into retention programmes that go beyond pay, which includes leadership effectiveness and engagement with employees.

Ronnie Tan, executive VP, Asia Pacific, Right Management, said: "Employers have to look beyond just money. Companies have to look at what would keep employees engaged.

"What would keep employee's engaged comes form several areas. The most direct area is in terms of leadership effectiveness in the company - the type of leaders people work for. People say that they join a company, but they leave the leader.

"The second part is in terms of a big push in career development and growth. If you look at companies now, we are looking at a multi generational workforce and people are having different expectations of their jobs.

"Organisations have to start getting much more innovative and creative in terms of how they would retain these performers other than just using money.

"A more stable workforce will certainly be a good thing for productivity. As people start to stay in their jobs a while longer, productivity - coming up from familiarity in the job - will definitely fill the uptake.

"If turnover starts to pick up again and we see a lot of job hopping around, there is going to be a negative productivity impact."

The NWC is expected to issue its latest guidelines in the middle of this year.

- Channel News Asia

Apr 11, 2010

Bosses hiring foreigners over S'poreans? Not true

MORE Singaporeans are complaining that employers prefer to hire foreigners over them.

But investigations by a tripartite panel that looks at work discrimination issues found that the accusations were invariably unfounded.

'In the cases we have intercepted, employers say this is based on the qualifications of the person and not nationalities,' said Madam Halimah Yacob, a labour MP who is co-chairman of the Tripartite Alliance for Fair Employment Practices (Tafep).

The alliance does not keep track of the number of complaints, but 'we do see more of them', she told reporters at the sidelines of a conference on fair employment practices.

Noting the concern expressed by Singaporeans who feel they have lost out, Madam Halimah said: 'We tell employers to be very careful and not say they prefer a certain nationality as Singaporeans get alarmed. Their ads should be based strictly on their needs.'

Her comments highlight an issue that has sparked tension in Singapore owing to the surge of foreigners in recent years.

Some netizens have posted job ads online, circling parts of them which specify that only certain nationalities need apply for a position.

Madam Halimah, however, feels the problem is counter-intuitive: 'Wise employers know they should look strictly at merit so that they get the best talent for the organisation.'

Her Tafep co-chairman Bob Tan, who is also vice-president of the Singapore National Employers Federation, agreed.

'From an employer's point of view, we want to hire the best. All things being equal, I would prefer to hire a Singaporean. A Singaporean has roots here. Whatever investments we put in, he will stay,' he said.

'Very often, there is some misunderstanding on why foreigners are hired over Singaporeans. It has got to do with the job requirements.'

Asked if cost is a factor as some foreigners tend to be less costly to hire than Singaporeans, Mr Tan said: 'Not necessarily so. In this tight labour market situation, I don't think anyone is being discriminated against.'

With the Government making clear it is slowing the flow of foreigners into Singapore, he added: 'It makes it more urgent for employers to hire and retain as many Singaporeans as possible.'

- The Straits Times

Apr 6, 2010

Job fair draws 700 seniors

BEING a senior citizen does not mean losing the zest to work. More than 700 job seekers aged over 50 proved this as they gathered at Bishan Community Club for a job fair held by the Chinese Development Assistance Council (CDAC).

More than 1,300 jobs, which included positions in the food and beverage, retail, cleaning, hospitality and security industries, were put up by 25 participating companies looking to entice senior job seekers.

Mr Ong Kong Eauw, 59, for instance, was looking to work as a store assistant. Having worked before as a store supervisor until six years ago when his company closed down its warehouse, Mr Ong decided to search for a similar job as he felt more comfortable in this line of work.

'Previously I was drawing about $2,000, but now I'm willing to settle for less. My two children are both working; I'm just looking for a job to keep myself active,' he added.

Information on skills upgrading courses was also provided at a fair booth. These CDAC-subsidised courses, which aim to help seniors who want to acquire skills such as word processing or to brush up on conversational English, attracted scores of applicants.

This is not the first such job fair by the CDAC. Jobs For Seniors was first held last November at Sengkang Comunity Club, drawing more than 500 applicants then.

- The Straits Times

Apr 5, 2010

Grads get jobs in 6 months

DESPITE the recession, nine out of 10 students who graduated from the three local universities last year found jobs within six months of graduation, according to Ministry of Education (MOE) statistics released yesterday.

And there was even better news for those in teaching, nursing and dental surgery, with graduates posting a 100 per cent employment rate in those sectors.

The MOE's Graduate Employment Survey, conducted annually, looked at those who graduated from the National University of Singapore (NUS), Singapore Management University (SMU) and the Nanyang Technological University (NTU) last year and what fraction landed a job within six months.

It also looked at the mean salary across faculties.

Apart from teaching graduates from NTU's National Institute of Education, and nursing and dental surgery graduates from NUS, those from NUS' business administration (accountancy) programmes, and SMU's economics and accountancy programmes were also largely recession-proof.

But last year's economic gloom did affect salaries, with average wages last year lower than those in 2008.

- The Straits Times