Labour productivity continues to slide in S’pore

Labour productivity continued to contract in the first quarter of this year in both the manufacturing and services sectors, sliding 2.2 per cent. This is the second worst quarterly showing in almost three years. Economists said that the poor performance was more likely the result of economic output falling in the last quarter. SMU Professor of Economics Hoon Hian Teck was of the opinion that the dip in productivity could be because companies are still holding on to their workers even though sales have fallen. The companies are avoiding retrenchments in case slower sales are temporary, he said.