Employers are hiring; where are the applicants?

There are said to be 1.39 job vacancies for every one unemployed person. And, yes, wages will go up.

DBS Group Research noted:

Higher labour costs will eventually get passed on to end consumers. A tight labour with unemployment rate at 1.9%, below the full employment level, will drive wages higher. A stricter foreign labour policy along with hikes in employer CPF contribution rate will surely contribute further to wage inflation. The risk is that such wage driven inflation pressure could prove to be more persistent and broadbased.

Latest employment data has shown that there are more jobs available than unemployed person. Specifically, there are 1.39 job vacancies for every one unemployed person. The upward pressure on wages and consequently on inflation will be the key factor keeping inflation above the historical norm going forward.

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