Hiring To Slowdown In 2012

Posted on 05/12/2011

Hiring is set to see a slight decrease in the coming year, according to Joshua Yim, CEO of recruitment firm, Achieve Group.

“I think generally jobseekers and employees will be concerned looking at the first quarter of 2012,” he says.

Speaking to HRM regarding the slowing economy and its effects on hiring trends for the upcoming year, Yim says that already 10-15% of companies in Singapore are reducing their hiring or have stopped increasing their headcount. 

He notes that several industries such as semi-conductors, electronics and manufacturing have been decreasing their hiring over the past two months. However, Yim says that industries such as consumer goods, retail, and hospitality will be areas that will not be as adversely affected when it comes to hiring as there is always demand for service staff. 

Yim predicts that there will be a slowdown in hiring in the first and second quarters of 2012 but it will not be as “bad” as compared to the financial crisis years of 2008 and 2009. He also notes that organisations having experienced the previous crisis have the “residue wisdom” and will be able to handle the economic slowdown.

In addition, Yim says that the unemployment rate could rise. In the last quarter, the unemployment rate stood at 2.2%.

Retrenchment numbers too will go up next year (in the first and second quarters), according to Yim. However some organisations have been making changes in their work policies to prevent it from happening. “There are some companies in the semiconductor and electronics industries that are already moving to a four-day work week.”

Source: HRM Asia, 05 Dec 2011