) The record number of jobs created in the April-June quarter has been revised upward as employment kept surging, pushing monthly earnings to a level

) The record number of jobs created in the April-June quarter has been revised upward as employment kept surging, pushing monthly earnings to a level not seen since the last economic boom in 2000.

Updated figures released yesterday by the Ministry of Manpower (MOM) in its quarterly Labour Market report show the economy added 64,400 jobs in Q2 - an all-time quarterly high, exceeding the increase of 49,400 in the previous quarter and 36,400 in Q2 last year.

Earlier preliminary data showed total employment jumped 61,900 in Q2.

Accordingly, the unemployment rate in June has been adjusted from a preliminary 2.4 per cent - a six-year low - to 2.3 per cent, down from 2.9 per cent in March.

The resident jobless rate - covering Singaporeans and permanent residents - was similarly revised from 3.2 to 3.1 per cent, down from 4 per cent in March.

The tighter labour market has put even more pressures on wages, raising monthly earnings 8.5 per cent over the year in Q2, up from 5.5 per cent in Q1. After adjusting for inflation, real earnings in Q2 rose 7.5 per cent, against 5 per cent in Q1.

‘The increase was the highest registered since the last economic boom in 2000 when earnings rose by 8.9 per cent in nominal and 7.5 per cent in real terms,’ MOM’s report says.

Productivity also increased, though marginally by 0.4 per cent. But the rise ended two straight quarters of decline.

‘The improvement in productivity helped moderate the increase in overall unit labour cost (ULC) to 5.7 per cent over the year in Q2 07, after a 5.9 per cent increase in the previous quarter,’ the report says.

In the manufacturing sector, ULC grew 3.1 per cent, sharply down from 7.1 per cent in Q1.

The services sector led the hike in earnings in Q2, posting a real increase of 8.6 per cent. Real earnings in manufacturing and construction actually eased in Q2.

The new jobs in Q2 brought total employment growth to 113,800 in the first six months of the year, against 81,500 in the same period in 2006.

The services sector, led by gains in community, social and personal services, continued to account for the biggest chunk of the employment growth in Q2. It added 36,800 jobs, up from 33,700 in Q1.

Construction, fuelled by a building boom, posted the biggest jump in employment, doubling the jobs created to 10,900 compared with the previous quarter.

‘Brisk hirings in marine and offshore engineering more than offset job losses in electronics, leading to growth in manufacturing employment of 15,900,’ MOM’s report says. In Q1, manufacturing created 10,100 new jobs.

But the improvement on the retrenchment front was less stark in Q2 - 1,918 workers were axed, marginally below the 1,964 laid off in Q1. Over the first six months, the improvement was more significant, with the number down to 3,882, from 6,916 in the first half of 2006.

Job-hopping in Q2 was not as rampant as feared, despite the labour pool drying up, according to the report.

The resignation rate among professionals, managers and executives rose. But the increase was small - up from 1.6 per cent in Q2 last year to 1.7 per cent. Among production operators, cleaners and labourers, it remained the same as a year ago.



Source: Business Times 15 Sept 07