The labour market remains tight as more jobs were created last year than in 2011, thanks to a booming construction sector. Such tightness, despite an increase in layoffs, is likely to persist this year, say private‐sector economists and professional recruiters. Some 129,100 jobs were added last year, up 4 per cent from 2011, according to the Labour Market 2012 report.

Total employment rose 122,600 in 2011, up 3.9 per cent from 2010. Last year's increase in jobs reflected mainly stronger employment growth in the construction sector, the report said. "Excluding construction and foreign domestic workers, the growth in total employment at 86,700 or 3.3 per cent in 2012 was lower than the 95,600 or 3.8 per cent in 2011."

Local employment in 2012 jumped by 58,700 or 2.9 per cent, much higher than the previous year's gains of 37,900 or 1.9 per cent, as employers switched more to local workers because of more stringent curbs on hiring foreigners.

Foreigners still made up a third of the overall workforce, in line with government's target. The move to cut dependence on foreign workers is part of the push to restructure the economy and raise productivity, which was still falling in 2012 but at a declining pace. With restructuring picking up  ‐ and a slowdown in the economy  ‐ redundancy also rose as 11,010 workers were laid off last year, up from 9,900 in 2011. Still, the report said the number was far below the 23,430 high recorded in the 2009 recession.

Source: AmFraser