http://www.straitstimes.com/Breaking+News/Singapore/Story/STIStory_411023.html
Worst not over
By Sue-Ann Chia
BOTH Manpower Minister Gan Kim Yong and labour chief Lim Swee Say, in their comments on the latest job figures on Friday, said it was still too early to celebrate.
'The most important message is to remind all of us that the worst is not yet over,' Mr Gan told reporters at the sidelines of an event. But the figures are 'encouraging', he said, adding: 'It reflects the fact that workers, employers and the Government have been able to work together to work through this recession as a team.'
He also credited government aid measures for minimising layoffs and stabilising the jobless rate, which includes foreigners working here. He cited the Jobs Credit wage subsidy scheme and the Skills Programme for Upgrading and Resilience (Spur), which subsidises worker training.
They were particularly instrumental in lowering the jobless rate among residents from 4.8 per cent in March to 4.6 per cent in June.
The dip is due to more job seekers deferring their job search in pursuit of training courses, said the MOM in its report. Out-of-work residents attending training are not counted as unemployed.
But such an artificial propping up of the jobless rate may not be sustained for long, say analysts.
HSBC economist Prakriti Sofat predicts that the jobless rate will peak at around 4 per cent at the end of the year. This prognosis echoes the warning of further layoffs towards the end of the year by Mr Lim, secretary-general of the National Trades Union Congress (NTUC).
'So far, the NTUC has received retrenchment notification for more than 1,500 workers,' he said.
It is due to two reasons: Some companies can no longer hold on to workers due to weak global demand for their goods, while others are moving out of Singapore to a cheaper location.
As a result, the economy could plunge again. This 'double dip' would spell a W-shaped recovery.
Read the full story in Saturday's edition of the Straits Times.
'The most important message is to remind all of us that the worst is not yet over.'
Manpower Minister Gan Kim Yong
Worst not over
By Sue-Ann Chia
BOTH Manpower Minister Gan Kim Yong and labour chief Lim Swee Say, in their comments on the latest job figures on Friday, said it was still too early to celebrate.
'The most important message is to remind all of us that the worst is not yet over,' Mr Gan told reporters at the sidelines of an event. But the figures are 'encouraging', he said, adding: 'It reflects the fact that workers, employers and the Government have been able to work together to work through this recession as a team.'
He also credited government aid measures for minimising layoffs and stabilising the jobless rate, which includes foreigners working here. He cited the Jobs Credit wage subsidy scheme and the Skills Programme for Upgrading and Resilience (Spur), which subsidises worker training.
They were particularly instrumental in lowering the jobless rate among residents from 4.8 per cent in March to 4.6 per cent in June.
The dip is due to more job seekers deferring their job search in pursuit of training courses, said the MOM in its report. Out-of-work residents attending training are not counted as unemployed.
But such an artificial propping up of the jobless rate may not be sustained for long, say analysts.
HSBC economist Prakriti Sofat predicts that the jobless rate will peak at around 4 per cent at the end of the year. This prognosis echoes the warning of further layoffs towards the end of the year by Mr Lim, secretary-general of the National Trades Union Congress (NTUC).
'So far, the NTUC has received retrenchment notification for more than 1,500 workers,' he said.
It is due to two reasons: Some companies can no longer hold on to workers due to weak global demand for their goods, while others are moving out of Singapore to a cheaper location.
As a result, the economy could plunge again. This 'double dip' would spell a W-shaped recovery.
Read the full story in Saturday's edition of the Straits Times.
'The most important message is to remind all of us that the worst is not yet over.'
Manpower Minister Gan Kim Yong
