Out-of-work degree holders doubled in number last year.
Graduates are hurting the most among the growing pool of jobless Singapore residents battered by the economic crisis. The number of out-of-work degree holders more than doubled last year to 14,800 in December, from 6,200 a year earlier.
They joined an expanding group of unemployed residents - comprising Singaporeans and permanent residents - whose numbers rose from 56,100 in September to 69,900 in December last year.
As a result, the resident unemployment rate worsened further. It rose to 3.7 per cent in December, from 3.3 per cent in September, according to the 2008 labour market report released by the Manpower Ministry yesterday.
Analysts like Nanyang Technological University (NTU) economist Choy Keen Meng blame the rapid rise of unemployed graduates mainly on the financial sector.
The sector, which employs many degree holders, has been downsizing and laying off workers since the global financial fallout erupted in September last year.
The National Trades Union Congress' assistant secretary-general Ong Ye Kung added that struggling companies were also retrenching corporate staff such as their administrative workers, who appeared to be seen as non-essential to the company's survival.
'I've noticed companies are hanging on to those who add directly to the company's bottom line, such as those on the production line or engineers,' he said.
The surge in white-collar layoffs began towards the end of last year. Half of the 7,500 workers retrenched in 2008's final quarter were professionals, managers, executives and technicians: PMETs.
This has stiffened the competition that fresh graduates face. Said DBS economist Irvin Seah: 'They are fighting for the same jobs and fresh grads are at a disadvantage compared to those with experience.'
Read the full story in today's edition of The Straits Times.
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