Labour-intensive industries marred with manpower shortage epidemic

On back of a loosening labour market.

In the face of a slowdown in employment, it’s interesting that some businesses, particularly in the labour-intensive sectors are scrambling to find employees for their vacant positions.

According to the Monetary Association of Singapore, unmet labour demand was most acute with for accommodation & food services, retail trade and administrative & support services.

Labour demand, meanwhile, moderated in real estate, professional services and manufacturing, according to the MAS.

In line with the labour demand, underlying pressures remained adamant, with resident wage growth rising to 3.4% yoy in 1H15.

“The manufacturing sector witnessed the sharpest decline in output per worker, while productivity gains in construction and services were negligible. Consequently, unit labour cost rose at a fairly rapid pace of 5.2% in H1 2015, following the 4.0% increase in the preceding quarter,” MAS said.