(RTTNews) - Singapore’s jobless rate edged up in the third quarter, after remaining stable in the previous two quarters, an official report showed Friday. Meanwhile, employment grew for the first time this year.

The Ministry of Manpower said the overall jobless rate moved up to 3.4% in the third quarter, on a seasonally adjusted basis, after holding steady at 3.3% in the first and second quarters. This is the highest rate since the second quarter of 2004, when the rate was at 3.6%. The resident unemployment rate also climbed to 5% from 4.6% in the second quarter.

Both jobless rates remained below the peak seen in September 2003, when the SARS virus broke out, the ministry noted. At that time, the jobless rate of residents stood at 6.2%, while the overall jobless rate was 4.8%.

Unadjusted, the jobless rate for the overall population decreased to 2.9% in the third quarter from 4.1% in the previous quarter. The decline came as students who were looking for work during the mid-year school break returned to school and the tertiary graduates started to secure employment.

In the meantime, reflecting a recovering economy, total employment grew by 15,400 in the third quarter, after falling by 7,700 in the second quarter. This is the first rise in employment after two consecutive quarters of decline. In the third quarter, a total of 2.9 million persons were employed.

Employment rise was seen in the services and construction sectors, but fell in manufacturing. Employment jumped by 13,400 persons in the services sector and climbed by 8,100 in construction. However, in manufacturing, employment fell by 6,600 persons.

Despite rising unemployment, government authorities have continued to forecast good prospects for the economy in the coming quarters. The Monetary Authority of Singapore Thursday said the economy could grow at a slower and steadier pace over the coming quarters, but with next year’s growth expected to be lower than in previous post-recession periods as the external environment continues to pose challenges.

After two consecutive quarters of double-digit expansion, the central bank said the GDP growth could shift to a more sustainable trajectory in 2010, driven by a modest turnaround in final demand in Singapore’s key external markets. The economy is likely to settle on a gradual expansion path, it added.

Elsewhere, the International Monetary Fund raised the economic outlook for Singapore on Thursday, with the city-state now forecast to grow 4.3% next year, revised up from the earlier estimate of a 4.1% growth. Further, the lender revised down the economic contraction for this year to 1.7% from 3.3%

Earlier, the Ministry of Trade and Industry had also raised the GDP forecast for 2009. The ministry estimates the city-state economy to shrink in the range of 2.5% to 2% this year compared with 4% to 6% contraction estimated in July.

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Posted in Categories: Economy, Forex, Releases.

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