Singapore needs 500,000 jobs not 130,000 jobs

[Watchman]

Singapore needs 500,000 jobs not 130,000 jobs

130,000 JOBS …to meet S’pore’s latest growth forecast
November 20th, 2010 | Author: Online Press

THE Singapore economy will need to create as many as 130,000 jobs next year if the latest economic growth forecast is to be met, economists said yesterday.

Most of these jobs are set to come from the service sector, although there is likely to be broad-based job creation across most industries, said human resource experts and companies.

The two integrated resorts are leading the hiring charge. They look set to continue hiring rank-and-file service staff for restaurants, hotels and tourist attractions in the next two to three years.

Marina Bay Sands has 1,000 vacancies to fill at its job fair today and tomorrow, while a Resorts World Sentosa spokesman said it aims to hire another 3,000 staff in the next two to three years.

The Ministry of Trade and Industry said on Thursday that the Singapore economy is expected to grow by 4 per cent to 6 per cent next year, slower than the record 15 per cent forecast for this year.

While modest, this growth forecast is above what is regarded as the long-term growth potential of the Singapore economy at 3 per cent to 5 per cent.

This implies that the economy will need either more workers or higher productivity levels to keep up with the improved demand conditions, said Bank of America Merrill Lynch economist Chua Hak Bin.

While the Government has made it a priority to boost productivity, a jump is unlikely to occur overnight, he noted.

‘If we take slightly more than the historical rate of about a 1 per cent productivity increase, then we will need 4.5 per cent to 5 per cent growth in the workforce to meet this 4 per cent to 6 per cent

forecast,’ said Dr Chua.

Given that the economy has already created about 85,000 jobs in the first nine months of this year, he estimated it will need 110,000 more workers next year.

This robust figure is partly explained by the fact that Singapore’s growth and employment numbers for next year start from a relatively low base, said Lee Kuan Yew School of Public Policy economist Tan Khee Giap.

In 2006, 176,000 jobs were created on the back of 8.6 per cent growth, while in 2007, when growth was 8.5 per cent, 234,900 jobs were added to the economy.

But CIMB economist Song Seng Wun, who put the necessary jobs growth figure at 130,000 for next year, said the economy is unlikely to return to those highs next year.

‘Most of the jobs created will come from the service sector, and some from manufacturing,’ he said.

The tight labour market, with unemployment at a low of 2.1 per cent, may also mean that the Government will revisit the foreign worker issue, he added.

‘In the short term, the Government will want to keep the tap closed due to political reasons,’ he said, referring to the possibility of elections being called soon.

‘But this Government is a pragmatic one, and in the medium term, it is doubtful that it will want to miss growth opportunities by not allowing more foreign workers to come in.’

As a result of the rising demand for workers, the upward pressure on wages will continue, said DBS Bank economist Irvin Seah.

Mr Daniel Tay, chief executive of cafe chain Bakerzin, said plans for his company’s expansion have stalled because he cannot find the workers he needs.

Another 120 workers are required in order to open 10 more outlets, he added.

‘Locals do come after I advertise, but they leave after just one day because many cannot stand the long hours.’

Mr Lawrence Leow, president of the Association of Small and Medium Enterprises, said he hopes the Government will loosen the quotas for foreign workers.

The rosy outlook also extends to the manufacturing sector.

For instance, consumer goods manufacturer Dyson plans to expand its research and development facility in the next year or so.

The firm wants to hire more than 200 staff, on top of the 30 it already has. Most of the jobs created will be for engineers, technical experts and scientists, said a spokesman.

‘We are expanding in Singapore because we believe it’s a good place to do business, and it’s got people with the right sort of qualifications,’ she said.

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Source: StraitsTimes

 

[Dreamer1]

<CIMB economist Song Seng Wun, who put the necessary jobs growth figure at 130,000 for next year, said the economy is unlikely to return to those highs next year.

‘Most of the jobs created will come from the service sector, and some from manufacturing,’ he said.

The tight labour market, with unemployment at a low of 2.1 per cent, may also mean that the Government will revisit the foreign worker issue, he added>.


An ex-Malaysian knows the PAP quite well compared to the many ignorant Ang Mohs.

 

[ivebert]

<CIMB economist Song Seng Wun, who put the necessary jobs growth figure at 130,000 for next year, said the economy is unlikely to return to those highs next year.

‘Most of the jobs created will come from the service sector, and some from manufacturing,’ he said.

The tight labour market, with unemployment at a low of 2.1 per cent, may also mean that the Government will revisit the foreign worker issue, he added>.


An ex-Malaysian knows the PAP quite well compared to the many ignorant Ang Mohs.

Look very clearly.

Service industry jobs are not sustainable in a small economy like ours and will be gone when the economy is down or when government projects finish.

It is just a cue about their election timeline.

 

[besotted]

Unless dependency ratio is raised, productivity will drop