Labour costs up again, productivity still falling

Singapore

SINGAPORE's overall unit labour cost rose 4.4 per cent in the third quarter of 2014 - its fastest pace in over a year - as the effects of restructuring policies that are keeping the labour market tight continue to work their way through the economy.

While the desired outcomes of these policies have yet to materialise - labour productivity contracted for a second straight quarter in Q3 - the Ministry of Trade and Industry (MTI) on Tuesday reiterated the need to look beyond quarterly shifts to sector-specific and longer-term gains.