Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Singapore Unemployment Falls as Jobs Withstand Shrinking GDP

July 31 (Bloomberg) -- Singapore’s unemployment rate unexpectedly fell last quarter as construction companies and manufacturers increased hiring even as the economy contracted.

The seasonally adjusted jobless rate fell to 2 percent in the three months through June from 2.1 percent the previous quarter, the Ministry of Manpower said in a statement today. The median estimate of nine economists surveyed by Bloomberg News was for a rate of 2.2 percent. The economy added 29,200 jobs last quarter, compared with 27,200 in the previous period.

The Southeast Asian nation’s industrial output and exports rose more than economists estimated in June, while sales of homes by property developers such as CapitaLand Ltd. led to a rebound in private residential prices last quarter. The government is also building more public housing to meet the demands of an increasing population, holding up the island’s job market even as a faltering global recovery hurts growth prospects from Singapore to Taiwan.

“We do not expect a sharp deterioration in the labor market even as the economic outlook remains dotted with risks,” said Irvin Seah, a Singapore-based economist at DBS Group Holdings Ltd. “There’s a healthy pipeline of public transportation and residential projects which is supporting hiring in the construction sector.”

The services industry added 15,500 jobs last quarter, while manufacturing companies increased payrolls by 4,500, the report showed, citing preliminary data. Construction employment rose 9,500 in the three months through June.

The central bank said last week the island’s growth may fall below 1 percent should the U.S. and Chinese economies slump and the European crisis worsen significantly. The government currently predicts gross domestic product will increase 1 percent to 3 percent in 2012.

Singapore’s GDP fell an annualized 1.1 percent in the three months through June from the previous quarter.

To contact the reporter on this story: Sharon Chen in Singapore at schen462@bloomberg.net

To contact the editor responsible for this story: Stephanie Phang at sphang@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.