The labour market attracts a tremendous amount of attention from academics, policymakers and laymen alike. Many writers have commented on the policy issues surrounding employment, wages, productivity and the unemployment rate in Singapore (see for example Krause et al., 1987 and Lim and Associates, 1988). Yet few have analyzed their subtle links. We provide a fresh effort to investigate the interdependent relationships between labour market variables in this chapter. A glance at Figure 1.1 reveals that our intention is to relate developments in the macroeconomy – especially ﬂuctuations in aggregate output and the overall price level – to the job market.