That's down from 2.3 percent in the second quarter and the lowest rate since the first quarter of 1998, just as the Asian financial crisis spread across the region.

The data reflect another source of mounting inflationary pressure in the city-state, where the central bank recently tightened policy to stave off rising import prices and the spillover from a sizzling property market.

The economy created 57,600 new jobs in the three months through September, just shy of the record 64,400 added in the second quarter, according to the ministry's preliminary estimate.

Economists say Singapore's labor market appears unscathed by the recent credit market upheaval, and demand for jobs will likely feed into higher consumer prices into 2008. If so, the central bank may have to revisit options for keeping a lid on inflation.

The central bank responded to signs of rising inflationary pressure on Oct. 10, when it increased "slightly" the slope of its undisclosed currency band.

Third-quarter employment growth was led by the services industry, which added 34,500 new jobs after creating 36,800 positions in the second quarter. Manufacturing firms added 11,800 posts, somewhat less than the 15,900 in the previous three months.

The building boom sparked hiring in the construction industry, which added 10,800 jobs after creating 10,900 in the second quarter.

The number of new positions created in the third quarter was up from the same period a year earlier, when 43,000 jobs were added.

                                                      Home