According to the 3Q Labour Market Report released by the Ministry of Manpower (MOM) on 14 December 2023, the labour market expanded for the eighth consecutive quarter, with both resident and non-resident employment increasing, despite a weaker economic forecast.
However, job vacancies declined from 87,900 in June 2023 to 78,400 in September 2023, with the current ratio of job vacancies to unemployed persons at 1.58 in September 2023, compared to 1.94 in June 2023.
Retrenchments also increased from 3,200 in the previous quarter to 4,110 in 3Q2023 as more firms undertook reorganisation or restructuring activities or faced business and cost concerns.
Here are five other key employment data points worth noting from the 3Q2023 Labour Market Report.
# 1 Total Employment Growth In 3Q2023 Increase By A Smaller Amount From 2Q2023
The total employment (excluding Migrant Domestic Workers) increased by 23,600 in the third quarter of 2023. This figure represents a slight decrease from the 24,300 employment growth seen in the second quarter of 2023, indicating a modest slowdown in job creation across various sectors.
#2 Resident Employment Increase In 3Q2023
There was an increase of 2,800 in resident employment, which contrasts with a decrease of 1,200 observed in the second quarter of 2023. This growth was primarily in key growth sectors such as Health & Social Services, Financial & Insurance Services, and Professional Services, reflecting sector-specific expansions and possibly the impact of targeted policy interventions to boost local employment.
#3 Slower Employment Growth For Non-Residents
The growth in non-resident employment was 20,800, a slower rate than in the previous quarter. This slower pace might reflect regulatory changes, economic conditions, or shifts in sectoral demand. The construction sector, which largely employs Work Permit (WP) and other work pass (WP+) holders, notably experienced the smallest growth since the fourth quarter of 2021, suggesting a possible stabilisation or shift in the workforce composition in this sector.
#4 Unemployment Rate Remains Low
The overall unemployment rate stood at 1.9%, with resident and citizen unemployment rates at 2.7% and 2.9%, respectively. These figures indicate a stable job market. However, the resident long-term unemployment rate increase from 0.5% to 0.7% mirrors pre-COVID averages, hinting at potential underlying shifts in the labour market.
#5 Improved In Re-Employment for Retrenched Residents
The re-employment rate among retrenched residents improved from 59.4% in the second quarter to 65.3% in the third quarter of 2023. This improvement indicates effective labour market policies and a resilient economy that is able to absorb workers who have been laid off.
While the labour market continues to grow, the rate of employment growth has slowed compared to the previous year, influenced by economic challenges.
Looking ahead, the government believes that these economic headwinds are expected to persistently affect the labour market and urges employers and workers to utilise available programs to stay competitive and resilient in the face of economic uncertainty.
Employers are encouraged to continue transforming their businesses and preparing their workforce for evolving or new job roles. Workers, likewise, are advised to keep upskilling and remain open to new opportunities.
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