Minister Gan sees labour market remaining stable for rest of the year
By 938LIVE | Posted: 31 October 2009 2323 hrs

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SINGAPORE: Minister for Manpower Gan Kim Yong said that companies in Singapore need to review their business plans and decide on what works best for them, even as some firms begin restoring workers' wages which were cut during the recession.

Speaking on the sidelines of a community event on Saturday, Mr Gan said that he believes the labour market will remain stable for the rest of the year due to recent improvements in hiring sentiments.

Singapore's total employment grew by 15,400 in the third quarter. This is a marked improvement, as total employment had shrunk by 6,200 in the first quarter and 7,700 in the second. However the unemployment rate remains high, at 3.4 percent overall.

Among the resident labour force, the jobless rate increased to 5 percent. Mr Gan explained: "This is due mainly to the fact that a lot of new job seekers have re-entered the market looking for jobs as a result of a more positive business sentiment. On top of that, employers' hiring sentiment remains cautious, and coupled with the fact that there's still some spare capacities. So employers will tend to rely on the spare capacities to meet the demand before they tend to hire again."

- 938LIVE/sc