Labour market expands in 2024: MoM

Resident employment saw a notable rebound, growing by 8,800 after a decline in 2023.

The Singapore labour market continued to expand in 2024, with total employment increasing by 44,500, driven by robust economic performance and positive business sentiment, according to the Ministry of Manpower.

Resident employment saw a notable rebound, growing by 8,800 after a decline in 2023, with the biggest gains in higher-skilled sectors like Financial & Insurance Services, Health & Social Work, and Professional Services.

However, non-resident employment growth slowed significantly, dropping to 35,700 in 2024 from 83,500 in 2023 .

This slowdown was largely due to a decrease in the number of Employment Pass (EP) and S Pass holders, following adjustments to the COMPASS system and stricter qualifying salary requirements.

Instead, Work Permit holders, who typically fill blue-collar roles, drove the growth in sectors like Construction and Manufacturing.

Job vacancies surged in the final quarter of 2024, rising to 77,500 in December from 61,500 in September, underscoring the continued tightness in the labour market.

There were more job openings than unemployed persons, with a vacancy-to-unemployed person ratio of 1.64 in December 2024. This marked a slight improvement from the previous quarter, though still lower than the ratio seen in December 2023.

The unemployment rate remained low, holding steady at 1.9% overall, with resident unemployment at 2.8%. The incidence of retrenchment also remained relatively low, with 13,020 retrenchments in 2024, a decrease from 14,590 in 2023.

Looking ahead, the labour market is expected to continue expanding into 2025, although at a slower pace, as the Singapore economy is forecast to grow by 1% to 3%.

Employers are expected to continue increasing wages and headcount, but global trade frictions and economic disruptions may soften labour market conditions in the longer term.