The Labour Market Report, issued quarterly by the Ministry of Manpower (MOM), offers essential data on Singapore’s employment landscape, making it a valuable resource for both employers looking to recruit and employees considering a job change.
On March 14, 2024, the MOM unveiled its report for the fourth quarter of 2023. This report highlights the resilience of Singapore’s labour market in the face of global economic uncertainties and inflation, showing a significant increase in total employment by 88,400. Much of this employment growth came from the non-resident sector. Despite these changes, the employment situation for residents remained robust and stable, with the unemployment rate for residents low at 2.8%.
Job Vacancies Declined In 2023
Labour demand appeared to show signs of cooling throughout the year, evidenced by a slowing employment growth rate across successive quarters and a decline in job vacancies in the first three quarters. However, a slight uptick in job vacancies was observed in December 2023, after six consecutive quarters of decline. This pointed to a moderately tight labour market, with the job vacancy to unemployed person ratio rising to 1.74.
The slight increase in job vacancies in December 2023, shows a labour market that remains moderately tight but adaptable to the prevailing economic conditions. This resilience, coupled with anticipated improvements in business and economic outlooks, sets a cautiously optimistic tone for the labour market’s trajectory into 2024.
Employment Growth Has Slowed Down In 2023
In the last quarter of 2023, the job market expanded by 7,500 positions, continuing a growth trend for the ninth consecutive quarter. However, this growth rate was significantly lower than in the third quarter of 2023, during which 2,800 jobs were added for residents and 20,800 for non-residents.
The fourth quarter’s growth was more modest, with an increase of only 400 jobs for residents and 7,000 for non-residents. This deceleration was expected, aligning with earlier signals of reduced hiring intentions and a drop in the number of job vacancies, indicating a slowdown in the demand for labour.
Retrenchment Increased In 2023
The rate of retrenchments in 2023 doubled compared to the record low in 2022, aligning more closely with pre-pandemic levels.
Business reorganisation and restructuring, particularly in sectors like Wholesale Trade, Information & Communications, and Electronic Manufacturing, were the primary reasons for these retrenchments. Despite this, a significant majority (61.5%) of retrenched workers found employment within six months post-retrenchment, although this was a slight decrease from the previous quarter. The resident long-term unemployment rate remained low at 0.7%.
Read Also: Why Singapore Employers Need To Be Prepared For An Older Workforce
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