Based on recent reports from the Monetary Authority of Singapore, unemployment rate in Q3 2011 stood at 2.0%, while the CPI inflation rate rose to 5.5% from 4.7% in Q2 2011.

Amid a more challenging business and economic landscape, the MAS projects economic growth to slow to between 1 and 3 % in 2012, and for headline CPI inflation to range between 2.5 and 3.5% in 2012.

Anecdotal evidence from various businesses indicate average wage adjustments of about 1.5%, suggesting that real wages will shrink by between 1 and 2% in 2012. Some employers have also indicated a possible wage freeze, on top of slowing recruitment activities.