Net job gains for local residents in first half

Sun, Aug 16, 2009
The Straits Times

Net job gains for local residents in first half

By Goh Chin Lian

MORE local residents were employed in the first half of this year despite the contraction in the economy.

In all, 1,800 jobs for them were added, said the Ministry of Manpower (MOM) yesterday.

At the same time, the number of foreigners employed fell by 20,400.
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The job gains for Singaporeans and permanent residents were highlighted by Minister Minister Lee Kuan Yew yesterday at a National Day dinner in Tanjong Pagar GRC.

He noted that foreign workers act as a buffer in a downturn.

'This year, many of the job losses have been foreign workers rather than citizens.

'In fact, among residents there are net job gains in the first half, despite the -6.5 per cent growth!' he said, referring to the first-half economic contraction.

MOM divisional director Jeffrey Wong attributed the gains largely to recruitment in such sectors as retail, food and beverage, hotels, health care, construction and the public sector.

Mr Wong and analysts interviewed also referred to government subsidies that were aimed at coaxing bosses to hire and retain residents.

In particular, the Jobs Credit wage subsidy scheme and the Skills Programme for Upgrading and Resilience, which subsidises worker training.

The MOM's latest job gains figures elaborate on Mr Lee's speech which dwelt on the need for Singaporeans to welcome foreigners working here.

They make up 36 per cent of Singapore's workforce, as of end of last year.

Said Mr Lee: 'The economy needs foreign workers so that we can grow faster when conditions are favourable, and to buffer the shock when conditions turn.

'Had we not had the foreign workers, more Singaporeans would have lost their jobs.'

MOM figures last month show Singapore lost a total of 18,600 jobs in the first half of this year. But there was no breakdown between foreigners and residents.

The only indication that it was getting better for residents was the dip in their jobless rate, from 4.8 per cent in March to 4.6 per cent in June. But overall unemployment rate remained at 3.3 per cent.

In his speech, Mr Lee also pointed out that Singapore's reputation for stability and efficiency was instrumental in attracting investors.

He cited ExxonMobil's decision to invest in a new plant in Jurong Island.

Its board of directors were initially unwilling. The chief executive officer flew them to Singapore to meet Prime Minister Lee Hsien Loong and MM Lee. They also visited Jurong Island.

Said MM Lee: '$4.5 billion is a vote of confidence in our future. Other companies, other MNCs will notice that.

'I'm quite sure when the crisis is over and people start investing again, we are going to get many investments.'

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