S'pore expected to feel bite of U.S. economic slowdown<\/p>\n
SINGAPORE (AFP): Unemployment in Singapore is forecast to rise
\nsharply this year as retrenchments increase and job vacancies
\nfall due to the impact of the U.S. economic slowdown, the
\ngovernment said on Wednesday.<\/p>\n
An improvement in the unemployment rate to 2.4 percent in the
\nMarch quarter from 2.9 percent the previous quarter is expected
\nto be shortlived as new graduates flood the market this June, the
\nministry of manpower said in a report.<\/p>\n
\"The slowing economy has started to affect the Singapore
\nlabor market. Nearly all indicators point to slackening in the
\nlabor market,\" the ministry said.<\/p>\n
\"The entry of this year's cohort of tertiary graduates and the
\nexpected weakening in labor demand is likely to aggravate the
\nlabor market conditions in the months ahead,\" it added.<\/p>\n
It cited a survey of business expectations by the statistics
\ndepartment and the economic development board which warned of
\nfurther deterioration in business conditions for the key
\nmanufacturing sector.<\/p>\n
This suggested \"dismal employment prospects ahead,\" the
\nministry said.<\/p>\n
Companies in the electronics and precision engineering sectors
\nwhich were badly hit by the global downswing expect to further
\ncut staff in the second half, it said.<\/p>\n
\"Overall manpower demand will falter if economic conditions
\ncontinue to soften and the weakness spills over to services,\" the
\nministry said, noting a 20 percent drop in media advertising in
\nApril from the previous month.<\/p>\n
In the three months to March, 3,248 workers were retrenched --
\nhigher than the average 1,900 registered in the last three
\nquarters of 2000.<\/p>\n
This reflected the weakness in global demand for electronics
\nproducts and the faltering U.S. economy -- a major market for
\nAsian exports, the ministry said.<\/p>\n
But the retrenchments are still lower than the 7,000 to 8,000
\nworkers laid off per quarter during the Asian financial crisis in
\n1998, the ministry said.<\/p>\n
Job vacancies fell to 19,755 in March from 22,115 in January,
\nwith the ratio falling to 0.76 job openings for every 100 job
\nseekers in March, from a high of 1.14 in September 2000.<\/p>\n
Economists project Singapore's economic growth this year to be
\nat the bottom end of the government's 3.5-5.5 percent forecast,
\nfrom a sizzling 9.9 percent last year.<\/p>",
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