Total employment grew 3.9% in 2010

The total employment growth of 115,900 far exceeded the 37,600 or 1.3% in 2009.

According to the Ministry of Manpower, bolstered by the robust economic performance, the labour market recovered strongly in 2010 from the 2009 recession. With the tighter job market, workers' earnings have risen. Labour productivity has also increased, driven by the strong output growth.

Services contributed the bulk of employment gains (111,000) in 2010, almost double that in 2009 (55,600). Construction employment grew by 2,500, down substantially from the gains of 25,100 in 2009. This was mainly due to the completion of several large building projects and fewer new projects coming on stream. Manufacturing employment declined by 1,100, but this was much lower than the losses of 43,700 in 2009.

In 2010, local employment grew by 56,200, exceeding the 41,800 gain in 2009. Foreign employment increased by 59,700 in 2010, after declining by 4,200 in 2009. Excluding foreign domestic workers, foreign employment rose by 54,400 in 2010.

Unemployment remained low during 2010, after declining sharply in December 2009 from the recession high in September 2009.

With the strong economic recovery, the unemployment rate averaged 2.2% (overall) and 3.1% (resident) in 2010, down significantly from 3.0% and 4.3% respectively in 2009. On average, 64,800 residents were unemployed in 2010, compared with 86,900 in 2009.

Fewer workers were laid off for the whole of 2010, despite an increase in the last quarter. Redundancies for the whole year totalled 9,800, down substantially from 23,430 in 2009 and 16,880 in 2008. This was the second lowest level hit, since the start of the data series in 1998. The redundancies in 2010 comprised 7,740 workers retrenched and 2,070 whose contracts were terminated prematurely.

For the full year of 2010, earnings rose by 5.6% (nominal) and 2.7% (real), after declining in 2009 (nominal:-2.6%, real: -3.2%).

In summary, driven by the exceptional economic expansion, the labour market has recovered strongly in 2010. With many jobs created, unemployment remained low during the year, following a sharp decline in December 2009 from the recession high. The robust output growth has led to a strong recovery in labour productivity, after two years of decline. This has helped to ease cost pressures on businesses, even as workers’ earnings rose.