Singapore  - Singapore's unemployment rate rose slightly in the third quarter 2009, government data released Friday showed, although companies fired fewer workers as the city-state emerged from its worst recession in history.

According to preliminary estimates, the unemployment rate rose slightly to a seasonally adjusted 3.4 per cent end of September, after staying steady at 3.3 per cent since March, the Ministry of Manpower said in a statement.

The rate was well below the peak of 4.8 per cent Singapore posted in September 2003 due to the outbreak of severe acute respiratory syndrome, or Sars.

In the third quarter 2009, employers cut 2.200 jobs, after 5.980 workers had lost their jobs in the second quarter, said the ministry.

Job losses in manufacturing fell sharply to 700 in the third quarter, compared to 2,900 in the second quarter.

In the three months through September, with a recovering economy total employment was estimated to have grown by 15,400, ending losses of 6,200 and 7,700 in the first and second quarter, respectively, the ministry said.

However, the gain in the third quarter was considerably smaller than a year ago when total employment rose by 55,700.

Earlier this month, Singapore's government had extended a wage subsidy programme for employers set to expire in December to avoid further job losses due to the global crisis.

Singapore's export-reliant economy had been hit hard by the downturn, but bounced back with double-digit growth in the second and third quarter.

The government expects the economy to shrink between 2 and 2.5 per cent this year. (dpa)