firec
25-05-09, 14:42
http://www.morganstanley.com/views/gef/index.html#anchor12bde100-46cc-11de-bda3-5555f0e7cbb4
Policy measures such as Skills Programme for Upgrading and Resilience (SPUR) and the Job-Credit Scheme were rolled out late last year and earlier this year, respectively, and with only 1Q09 jobs data available, the jury is still out on how effective these measures have been. However, if the seeming resilience of the labour market is being supported merely by the lagged nature of capex, and not by other structural factors such as stronger corporate balance sheets supporting stronger employment ability, we suspect that the labour market disconnect would be temporary and job losses could soon catch up when the capex recession invariably intensifies.
Policy measures such as Skills Programme for Upgrading and Resilience (SPUR) and the Job-Credit Scheme were rolled out late last year and earlier this year, respectively, and with only 1Q09 jobs data available, the jury is still out on how effective these measures have been. However, if the seeming resilience of the labour market is being supported merely by the lagged nature of capex, and not by other structural factors such as stronger corporate balance sheets supporting stronger employment ability, we suspect that the labour market disconnect would be temporary and job losses could soon catch up when the capex recession invariably intensifies.