JOB losses are looming as the economy slows, with companies in the manufacturing and financial services industries expected to be the first to cut staff.

This means unemployment is set to rise over the next few quarters, while salaries will grow at a much slower pace, said the Monetary Authority of Singapore (MAS) in its latest half-yearly Macro Economic Review, released on Tuesday.

Already, employers are turning cautious about hiring given the more uncertain outlook next year, the MAS added.

This article was first published in The Straits Times on October 26, 2008.