Manufacturing sector cut 1,900 jobs in Q4 2011

Wage growth across sectors meanwhile slowed to 4.0% in Q4 from 5.4% in Q3.

According to Monetary Authority of Singapore, overall employment rose by an estimated 36,300 workers in Q4 2011 as hiring picked up for the year-end festivities, with services accounting for the bulk (or 29,200) of the job gains.

Construction also added a considerable 8,600 workers on the back of a ramp up in public housing and infrastructure-related projects.

Manufacturing, in comparison, reduced headcount by 1,900 as activity in the sector weakened further, marking its first quarter of job losses for 2011. For the whole year, total employment gains rose to 121,300, exceeding the 115,900 in 2010.

Consequently, the overall seasonally-adjusted unemployment rate remained at2.0% in Q4 2011, while resident and citizen unemployment rates were also unchanged at 2.9% and 3.0% respectively.

However, MAS noted that abstracting from the seasonal increase in hiring, the weaker economic outlook weighed on employers’ sentiment. This was reflected in the moderation in y-o-y wage growth to 4.0% in Q4 from 5.4% in Q3, it said. Wage growth for 2011 as whole was 6.0%, up from 5.6% in 2010.

According to MAS, the weak sentiment is likely to drag down job creation in the next few quarters. 

The latest Business Expectations Surveys for Manufacturing and Services show that a net weighted 2% of manufacturers and 4% of services firms expect to lower headcount in Q1 2012.

In particular, hiring expectations deteriorated in the services sector across most segments. The employment outlook is especially weak in the hospitality, financial services, and real estate segments.