Singapore employers added 36,500 more jobs in the first quarter, pushing the unemployment rate to the lowest level in almost two years as robust economic recovery spurred firms to hire again. -- ST PHOTO: MUGILAN RAJASEGERAN
SINGAPORE employers added 36,500 more jobs in the first quarter, pushing the unemployment rate to the lowest level in almost two years as robust economic recovery spurred firms to hire again.
The seasonally adjusted jobless rate fell to 2.2 per cent in March, from 2.3 per cent in December, according to figures released by the Ministry of Manpower on Tuesday.
The job gains - for the third straight quarter - were comparable to the seasonal high of 37,500 in the last quarter of 2009. Employment fell by 6,200 in the first quarter a year ago due to the global economic downturn.
"The labour market strengthened in the first quarter of 2010, driven by the robust rebound from the economic downturn. Employment grew strongly, contributing to an improvement in unemployment for the second straight quarter as redundancies remained at pre-recessionary levels," said MOM in a statement.
"Amid rising job vacancies, labour turnover rose further signalling a tightening of the labour market. Reflecting the cyclical upturn, labour productivity grew strongly."
The bulk or 33,400 new jobs came from the services sector - thanks to the opening of Singapore's two casino resorts early this year, which boosted tourism and fuelled employment. The gains were higher than 31,500 in the fourth quarter and 7,500 in the first quarter of 2009.
Manufacturing added 3,100 workers, the second consecutive quarter of increase after shedding workers from the fourth quarter of 2008 to the third quarter of 2009. Construction lost 400 workers, after 20 successive quarters of employment gains.
The strong job gains pushed the seasonally adjusted overall unemployment rate declined to 2.2 per cent in March. Similarly, among the resident labour force, the unemployment rate dipped to 3.2 per cent Q1, from from 3.3 per cent in December. An estimated 63,300 residents were unemployed in March, compared to the the seasonally adjusted 66,200.
Long-term unemployment also improved. The number of residents who had been looking for work for at least 25 weeks shrank to 14,600 in March, from 16,600 a year ago, forming 0.7 per cent of the resident labour force.
MOM said 1,800 workers were retrenched and 600 workers had their contracts terminated prematurely. This was comparable to 2,220 in the fourth quarter of 2009 and only one-fifth of the record number - 12,760 - laid off in the first quarter of last year.
