Singapore – An estimated 300,000 jobs are expected to be lost between this year and the next, says Credit Suisse in the most pessimistic prediction yet.
Credit Suisse raised eyebrows with its dire forecast that about 160,000 positions will be shed in the services industry, 100,000 in manufacturing, and another 40,000 in the construction industry.
"As harsh as our assumptions may seem, they only imply that the economy gives up all of the jobs it created in 2008 and a portion of the new jobs in 2007," says Credit Suisse economists.
According to newspaper reports, other analysts are not convinced with Credit Suisse’s prediction, saying that the figure is extreme, even in an unprecedented crisis such as this one. Barclays Capital economist Leong Wai Ho spoke to Today, saying, "I think we have already seen the nature of the severity, I don't think we will get much worse than that." Leong predicted lay-offs to reach 35,000 instead.
While permanent residents and foreign workers are likely to bear the burnt of the layoffs, this that Singapore’s population may shrink 3.3% to 4.68 million next year from the current 4.84 million.
