According to the advance estimates released by the Singapore Ministry of Manpower (MOM) on Tuesday, the labor market in Singapore experienced moderate expansion in the first quarter of 2024.
The growth pace has slowed compared to previous quarters, a trend that MOM attributes to the cooling labor demand observed throughout 2023 due to ongoing global economic uncertainties.
Excluding Migrant Domestic Workers, the total employment figures recorded an increase, primarily driven by an uptick in resident employment. This contributed to maintaining low unemployment rates and a decrease in retrenchments for the second consecutive quarter.
MOM reports that total employment increased by 4,900 in Q1 2024, a slowdown from the 7,500 increase in the previous quarter. This growth was entirely supported by a significant rise in resident employment, which not only surpassed last year’s figures but also reached levels seen in non-recessionary periods.
Conversely, non-resident employment saw its first contraction since the third quarter of 2021, reflecting diminished labor demand.
According to MOM, the growth in resident employment was notably strong in sectors such as Financial Services, Health & Social Services, and Public Administration & Education. These sectors managed to compensate for the seasonal employment declines in Retail Trade, Food & Beverage Services, and Accommodation sectors after the festive period.
The construction sector, primarily employing Work Permit holders, experienced a reduction following changes in the sector’s Dependency Ratio Ceiling effective from 1 January 2024.
MOM states that retrenchments decreased to 3,000 in the first quarter of 2024, down from 3,460 in the previous quarter. The predominant cause of retrenchments was business reorganization and restructuring, indicating ongoing industry transformation.
The unemployment rates in March 2024 experienced a slight uptick to 2.1% overall, with residents at 3.0% and citizens at 3.1%. MOM highlights that these rates are still within the pre-pandemic range, underscoring the underlying resilience of the labor market.
However, MOM’s figures also show that the number of unemployed residents increased by 5,200 (non-seasonally adjusted) and 4,700 (seasonally adjusted), from Q4 2023 to Q1 2024, a rise that exceeds the increase in resident employment growth.
The Ministry of Trade and Industry (MTI) projects an economic upturn in 2024, which MOM cites as a likely catalyst for strengthened labor demand. While wage increases may decelerate, MOM’s surveys indicate an optimistic hiring outlook, with 50.7% of firms expressing intentions to recruit more staff in the next three months.
To facilitate economic growth and workforce adaptation, MOM emphasizes the critical role of reskilling and job redesign. Initiatives like the Career Conversion Programmes and the Jobs Transformation Maps are essential in preparing Singaporeans for future job demands, according to MOM.
MOM urges all stakeholders to fully utilize the available support programmes to remain competitive and resilient amidst economic fluctuations.
It should also be noted that the reference period for the survey data refers to the week preceding the survey interview.
‘Employed Persons’ are defined as individuals aged fifteen years and over who, during the reference period, worked for one hour or more, either for pay or profit.
While the number of employed has not decreased drastically, this definition by MOM raises concerns about the number of income-related under-employed individuals, as working merely one hour a week qualifies a person as ’employed’ rather than ‘unemployed.’”