On 31 January 2024, the Ministry of Manpower (MOM) shared its Labour Market Advance Release for the fourth quarter of 2023.
According to MOM, employment grew for both residents and non-residents for the whole of 2023 even though the pace of growth moderated in each successive quarter amidst weaker economic conditions. Here are three key highlights from the advance release that are worth noting.
#1 Total Employment Grew At A Slower Pace
In the fourth quarter of 2023, Singapore’s total employment, not including Migrant Domestic Workers, increased for the ninth straight quarter, adding 8,400 jobs.
However, this growth was slower than in previous quarters for both resident and non-resident workers, reflecting a downtrend in labour demand, as anticipated from earlier signs of less hiring and fewer job openings.
Growth was primarily in the Health & Social Services, Public Administration & Education sectors, along with Retail and Food & Beverage Services, partly due to seasonal hiring.
Overall, the employment increase for 2023 was modest, following a robust post-pandemic recovery in 2022. This trend of gentler growth was consistent among both local and foreign workers.
#2 Unemployment Rate Remained Stable & Low In 2023
As of December 2023, the unemployment rate remained unchanged at 2.8% for Singapore residents and 2.9% for Singapore citizens. The overall unemployment rate in Singapore stands at just 2.0%.
For the full year of 2023, the overall unemployment rate in Singapore was 2.9% for Singapore citizens, 2.7% for Singapore residents and 1.9% overall.
#3 Retrenchment Numbers Have Increased In 2023
In the fourth quarter of 2023, Singapore’s layoffs reduced to 3,200 from 4,110 in the previous quarter, reflecting a decline particularly after a peak in the Wholesale Trade sector. The Electronics Manufacturing sector witnessed an uptick in retrenchments, contrasting with the broader trend of stability or reduction in other sectors.
Annually, retrenchments increased from a historically low figure in 2022, doubling to 14,320 in 2023, with business restructuring cited as the main cause amid global economic challenges affecting export-driven and technological sectors.
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