By Fiona Chan

UNEMPLOYMENT could surge beyond the levels of recent recessions to hit a 20-year high of 5 per cent next year, according to a new report by DBS.

Its Singapore economist, Irvin Seah, estimates that the economy will contract 4.8 per cent this year, bringing about a total of 99,000 net job losses in the current recession. Manufacturing would be the worst hit with about 58,000 jobs lost, he added.

Mr Seah expects the unemployment rate to 'rise steadily' to 4.8 per cent by the end of the year and peak at about 5 per cent by the midde of next year. This would be the highest level of unemployment since the manufacturing recession in 1985 and 1986, when the rate hit 6.5 per cent, he said.

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