Singapore's unemployment rate falls to 10-year low

Oct 31, 2007, 3:49 GMT

Singapore - Singapore's unemployment rate fell to a seasonally adjusted 1.7 per cent, or 10-year low, as its buoyant economy maintained a rapid expansion, the Ministry of Manpower said Wednesday.

Preliminary estimates showed employment growing by 57,600 jobs in the third quarter of this year, substantially higher than the 43,000 in the same three months last year, but lower than the record gain of 64,400 in the previous quarter.

'The prevailing unemployment rate is the lowest in a decade, having improved to around pre-Asian crisis levels,' said the ministry's statement, referring to the economic crisis triggered in 1997.

Total employment gains for the first three quarters of this year reached 171,500 jobs, close to the 176,000 for all of 2006.

The seasonally adjusted jobless rate fell from 2.3 per cent in June this year.

The ministry attributed the improvement partly to 'an easing in the increase in resident labour supply over the past two quarters following rapid gains in residents entering the labour market in 2005 and 2006.'

Services continued to lead the employment gains, adding 34,500 workers in the third quarter.

Manufacturing posted gains of 11,800. Driven by growth in construction with two massive casino resorts scheduled to open in 2010, the construction workforce increased by 10,000.

The ministry said 1,700 workers were laid off in the third quarter with the majority from the manufacturing sector.