8 million
out of work in the US.
That's about twice the population of S'pore
THE numbers are
frightening. Yes, you might be tempted to say that the US is such a large
country with a population of 280 million so please don't read too much into it.
But the reality is that,
if there are so many people out there looking for jobs, there is something
seriously wrong with the economy.
The US economy is the
engine that drives growth in much of the world, especially Asia. And if that engine
continues to sputter, we are in for trouble too. (See report, below.)
For a time, this year,
the US looked like it was fighting its way out of recession. But now there is
fear it is slipping.
That weak recovery this
year produced not more than 150,000 new jobs - less than the average number
created in one month during the 1990s economic expansion.
The Washington Times
reported that while unskilled and less-educated workers often took the brunt of
layoffs in past recessions, this time around, joblessness is disproportionately
hitting workers with skills and education.
The lack of job openings
have hit a wide spectrum of people - from recent college graduates and airline
pilots to technology workers caught in the dotcom bust, as well as executives
dismissed from disgraced and bankrupt corporations.
The unemployment rate has
stayed at historically low levels, below 6 per cent despite the recession.
But labour analysts say
that's partly because many workers have grown discouraged and dropped out.
The length of time it
takes to find a new job is at its highest in eight years.
Mr Nariman Behravesh,
chief economist with the forecasting group DRI-WEFA said businesses continue to
trim workers and hold off hiring to cut costs and restore profits.
MORE THAN HALF OF US
FIRMS CUT STAFF
A survey by Watson Wyatt
Worldwide found that more than half of US corporations cut staff in the last
year even as the economy was recovering and that nearly half imposed hiring
freezes and kept a lid on pay hikes.
Mr Behravesh said the
good news is that cost-cutting by businesses has produced strong productivity
gains that enable the 131 million workers who still hold jobs to enjoy solid
income growth.
That, in turn, fuels
steady growth in consumer spending and supports growth in the overall economy,
he said.
But for now, the lack of
job opportunities is creating a growing angst not only among the unemployed,
but among people who have jobs and feel stuck in place with little opportunity
for advancement.
During the recent
recession, more than 2 million jobs were lost.
S'PORE
JOBS ALSO AT RISK
SINGAPORE'S economy is
heavily tied to the fortunes of the US. This is so because the US is the
biggest market for Singapore's exports.
And with the US market
being caught in stormy weather, it looks like we have some more rough sailing
to do.
In fact, Trade and
Industry Minister George Yeo said yesterday that he did not rule out the
possibility of Singapore slipping into recession again.
Speaking to the American
Chamber of Commerce BG (NS) Yeo said: 'What happens in Singapore will depend a
lot on what happens outside Singapore, particularly the US economy, which does
not look very good right now... If (there's) a double dip, then we've got to do
some necessary things.'
His comments come close
on the heels of warnings by other leaders.
Senior Minister of State
for Trade and Industry Tharman Shanmugaratnam said two weeks ago that this
year's economic growth is likely to fall below the Government's current 3 to 4
per cent forecast.
All this spells gloom on
the job front.
Recently, Manpower
Minister Lee Boon Yang said that the unemployment rate was likely to climb to 5
per cent or even 5.5 per cent by the end of the year.
On Oct 31, the Government
announced that the unemployment rate had hit a 15-year high of 4.8 per cent in
September.
Some 31,300 people, or a
third of job seekers, had been out of work for at least six months as of June,
according to the labour market survey by the Ministry of Manpower released in
September.