Preliminary estimates from the Ministry of Manpower show that total employment grew by 32,300 in the third quarter of this year.

Nearly two-thirds of the employment gains (67 per cent) were from services which contributed 21,900 jobs.

Construction added 6,600, while manufacturing employment rose by 3,500.

Layoffs remained low.

Based on preliminary estimates, a total of 2,000 workers were made redundant in the third quarter.

Of these, services laid off nearly half at 1,200.

Unemployment also dropped slightly after increasing in the previous quarter.

The seasonally-adjusted overall unemployment rate declined from 2.1 per cent in June 2011 to 2.0 per cent in September 2011.

The unemployment rate for residents dipped from 3.0 per cent to 2.9 per cent, while the unemployment rate for Singapore citizens dropped slightly from 3.1 per cent to 3.0 per cent over the same period.

Randstad’s regional director for Singapore & Malaysia, Karin Clarke, said the Ministry of Manpower’s third-quarter unemployment figure of 2.0 per cent is further evidence of Singapore’s tight labour market.

“At this rate, Singapore would be among the tightest labour markets globally, in contrast to the European and US markets which are experiencing rising unemployment rates. Companies need to apply HR strategies that allow them to be flexible in retaining staff, should Singapore experience an economic slowdown resulting from challenging European or US economies,” Ms Clarke said.

Song Seng Wun, regional economist at CIMB Research, said: “Looking ahead, we expect unemployment to inch slightly higher to perhaps 2.3 per cent, there will still be job creation. We think for this year, total job creation will probably be around 100,000, slightly less than 2010′s 116,000…I think we are still on track for 100,000 jobs for this year itself.

“Looking ahead into 2012, we think on the back of the slower global growth, with Singapore growth slowing down, we are still likely to get new jobs, perhaps around 65,000 plus. In essence…a slowdown around the world but still reasonable growth in Singapore and around the region, to support job creation still within the services, and within manufacturing and to some extent construction as well.”

Separately, ECA International said in its latest Salary Trends Survey that employees in Singapore can expect to receive a 4.5 per cent salary increase on average next year – higher than the 4.1 per cent hike they received this year, but lower than the regional average of 6.3 per cent.

It added that with inflation expected to moderate next year compared with this year, salaries of Singapore employees will be better off in real terms in 2012.

ECA International said when inflation, forecast to be 2.9 per cent next year, is factored in, Singaporeans will experience a real wage increase of 1.6 per cent, an improvement over the 0.4 per cent real wage increase seen this year.

Source: Channel News Asia