The sobering figure was cited by Singapore's former prime minister and founding father in a speech urging union leaders to prepare workers for tougher economic competition.

"Union leaders must recognise that there will always be a segment of our working population, probably about 10 per cent, who will face such dislocation," he said, according to the Straits Times.

He said that not only would some manufacturing jobs be lost to competition overseas, but work patterns and reward schemes were also changing dramatically.

With more firms running 24 hours a day, seven days a week, working hours would be determined by the need to maximise the use of expensive equipment and to meet expectations, he said. As a result, not everyone would be able to have weekends off.

Workers who could not retrain for new jobs coming on stream were urged to turn to service jobs in hotels, hospitals, fast-food centres and personal services, he said.

Mr Lee said Singapore needed foreign talent to tap its experience in the global environment.

"Locals are at a disadvantage because they lack exposure and the networking and confidence that comes with it," he said. "We have to take care not to have Singaporeans feel discriminated against in their own country."

Mr Lee said it was best to learn from Americans, who had been the most successful in keeping unemployment down. Their system allowed employers to hire and fire, unlike the European one which exacted a penalty on employers when they laid off staff.

As a result, European firms were unwilling to hire new workers even when the economy was growing, Mr Lee said. American workers were also mobile and flexible, willing to do different types of work.