Warning: There will be job cuts

Labor market to soften into Q4 2011 and also 2012.
The domestic labour market remained robust in Q3 2011, with the unemployment rate at a low 2.% in Q3 2011, but NTUC is already tracking the number of workers who might be retrenched according to NTUC Sec-Gen Lim Swee Say. Note the recent business expectations survey already suggest more cautious hiring intentions – for instance the Q4 employment outlook had dimmed with a net -2% of manufacturers foreseeing higher employment versus +10% in Jun, of which the transport engineering cluster is the most optimistic while the electronics, precision engineering and general manufacturing industries clusters expect to shed some workers in the next three months. As for the services sector, apart from F&B and retail trade and accommodation, most other services segments are flat to negative on Q4 hiring forecasts, with financial & insurance (-6%) and transport & storage (-1%) standing out as most bearish.