EMPLOYMENT LINKAGES AND STRUCTURAL CHANGES IN SINGAPORE

This paper studies the employment linkages in the Singapore economy using the input-output framework for 18 industrial sectors at 2-digit industrial classification. Using the 1995 and 2000 input-output tables, this paper generates a detailed breakdown of how a change in final demand in an industry creates employment within that industry as well as in other industries. The findings have allowed for an explicit analysis of employment linkages and structural changes in employment creation over time that occur within and between different sectors and industries. The results of the paper indicate the presence of strong employment linkages between different sectors of the economy, especially from the manufacturing to services sectors, but less so in the reverse direction. Such intermediate demand for services by the manufacturing industries would be a key driver towards increasing employment linkages and job creation in the services sector.

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