Singapore labour productivity dipped 2.6% in 2012

After a 1.3% and 11.3% gains in last 2 years.

According to OCBC, the unemployment rate averaged 2% last year, with Q4 clocking in at 1.8% amid a very buoyant jobs market – 129,600 jobs were created last year, up from the 122,600 in the previous year, notwithstanding the tepid GDP growth level. 

Labour productivity also shrank for the 5th straight quarter, capping a 2.6% decline in 2012. This followed a 1.3% yoy gain in 2011 and a 11.3% increase in 2010, and correlates with the moderation in headline GDP growth.

Here's more from OCBC:

Unit labor cost and unit business cost for manufacturing both rose 4.1% and 4.0% yoy respectively in 2012, close to the 4.6% rise in the headline CPI.

There remains much work to be done to drive a sustained improvement in the labour productivity story, so our expectations for FY2013 Budget are a continued push on the economic recalibration and inclusive growth themes, but given that 2013 bodes slightly brighter growth prospects and tight domestic labor market, there is no dire need for the reintroduction of the Jobs Credit Scheme for instance.