Singapore sees slower employment, lower retrenchments in 2024

Resident employment in higher-skilled sectors also grew in the last quarter.

The employment rate slowed whilst the number of retrenchments remained low in 2024, according to the latest labour market report by the Ministry of Manpower.

Employment growth for both residents and non-residents in Q4 was slower compared to the prior quarter. As a result, total employment growth slowed from 22,300 to 8,700 in Q4, though it was still higher compared to a year ago in Q4 2023 at 3,900.

Resident employment continued to grow in higher-skilled sectors such as Professional Services, Financial Services, and Health & Social Services, as demand held up. There was also an uptick in Retail Trade due to year-end seasonal hiring, following declines in earlier quarters

Meanwhile, non-resident employment was concentrated in the Construction sector, driven mainly by hiring for lower-skilled jobs held by WP holders. Non-resident employment declined in outward-oriented sectors such as Information & Communications and Insurance Services

Overall, employment rose for both residents and non-residents, although overall growth (45,500) was slower compared to 2023 (78,800) when the number of WP holders increased significantly.

MOM also reported that retrenchments increased from 3,050 in Q3 to 3,600 in Q4, but remained around non-recession levels.

Despite the rise in retrenchments in Q4, retrenchments were lower in 2024 (12,930) compared to 2023 (14,590), with no significant increases across sectors. The incidence of retrenchment also declined from 6.7 retrenched per 1,000 employees in 2023 to 5.8 in 2024. Throughout 2024, business reorganisation or restructuring remained the primary reason for retrenchments.

“MOM expects the labour market to maintain its growth trajectory going forward. MOM’s forward-looking polls in December 2024 found that the proportion of companies expecting to hire more workers increased from 43% in September to 46% in December. Additionally, 32% of companies plan to raise wages – double the 16% in September. Nevertheless, given the sustained uncertainty in the global economy, employers and workers need to press on with transformation and upskilling to adapt to changes and seize new opportunities,” the government said.