Job losses this year expected to exceed 29,000, says SNEF

Job losses this year expected to exceed 29,000, says SNEF
Channel NewsAsia
Channel NewsAsia

SINGAPORE: This year’s retrenchment figures are likely to bust the record of 29,000 jobs lost in 1998 during the Asian financial crisis, according to Singapore National Employers Federation’s (SNEF’s) president, Stephen Lee.

Mr Lee was commenting on a survey finding by HR firm Manpower Staffing Services where 636 employers across seven industry sectors were polled.

The survey found that 50 per cent of employers anticipate a cut in headcount, 29 per cent expect no change, while only seven per cent expect to increase staff strength in the second quarter.

On an industry basis, the survey found that the bleakest prospects are in the transport and utilities sectors, followed by public administration and education.

Hiring prospects are also weak in the trade and retail and services sectors, although quarter—over—quarter, there has been a slight improvement in the outlook for the finance, insurance and real estate sectors.

One emerging trend is more contract hiring, which gives more flexibility to employers.

SNEF has seen such numbers growing from 172,000 in 2006 to 190,000 last year and expects it to strengthen further.

SNEF says the silver lining here are the few sectors that are still hiring like the integrated resorts and start—ups, and encouraging take—up rates for training.

13,000 workers from 30 companies are taking up the national training programme SPUR.

But the job situation is likely to get worse before it gets better.

Mr Lee said: "NTUC’s secretary—general Lim Swee Say had already said most likely in the first quarter, retrenchment figures will hit 10,000. So if we work on that sort of figure, then I anticipate that in the second quarter, it (retrenchment figures) will continue to escalate. I don’t think we have seen the worst yet. Hopefully it will peak out in the second quarter of this year."

— CNA/yt

- wong chee tat :)