Singapore's jobless rate down to 3.7% in 4th qtr

Asian Economic News, Jan 31, 2005

SINGAPORE, Jan. 31 Kyodo

Singapore's jobless rate fell to 3.7 percent in the fourth quarter of last year from 4.6 percent a year earlier as job creation catches up with the country's economic upturn after a slump in 2003, according to figures released by the government Monday.

The jobless rate had already improved to 3.4 percent in the third quarter of last year -- the lowest in more than three years -- after hovering at 4.5 percent in each of the first two quarters of last year, according to the data from the Manpower Ministry.

Based on this, last year's annual average jobless rate came to 4.0 percent compared with 4.7 percent in 2003. Singapore's highest average jobless rate was 5.7 percent during a recession in 1986.

The Singapore economy was battered by the global electronics downturn and the SARS epidemic in 2003, when gross domestic product grew only 1.1 percent. Official flash estimates released recently show the economy grew 8.1 percent last year.

Employment expanded strongly by 66,000 jobs last year, more than reversing the 36,000 job losses suffered in the previous three years, the ministry said.

A hiring spurt during the year-end festive season also helped to boost employment in the fourth quarter, especially for the services sector, it said.

The manufacturing sector improved slightly while construction remained in the doldrums.