But government anticipates better economic growth in 2024, citing hiring plans, increased wages by employers
Labour demand in Singapore “cooled” over the course of 2023, according to the Ministry of Manpower.
While employment growth was maintained throughout 2023, it “slowed progressively” with each successive quarter, said its Labour Market Report for the fourth quarter of 2023.
Total employment in Singapore saw a modest growth of 88,400 in 2023, with most of the gains stemming from non-resident employment, particularly in sectors like Construction and Manufacturing.
Resident employment also experienced growth, albeit more modestly, with gains seen in higher-paying sectors such as Financial Services and Professional Services.
However, the pace of employment growth slowed in the fourth quarter of 2023, signaling a cautious approach amid evolving economic conditions, said MOM
A recent survey found Singapore’s job market is robust despite a decline in job postings and a moderation of economic growth.
Unemployment rates, retrenchments and job vacancies
Unemployment rates remained stable and low throughout 2023, with December 2023 figures indicating an overall rate of 2.0%.
While the long-term unemployment rate held steady at 0.7%, challenges persisted for seniors aged 50 and over, highlighting the need for targeted support measures.
Despite a notable increase compared to 2022, the total number of retrenchments in 2023 mirrored pre-pandemic levels, primarily driven by business reorganization and restructuring efforts. However, the fourth quarter saw a decline in the number of retrenchments, suggesting a potential stabilization in employment dynamics, said the Singapore government.
Manpower Minister Tan See Leng recently reminded employers across Singapore that it is their obligation to be fair when carrying out retrenchments in the workforce.
After six consecutive quarters of decline, the number of job vacancies in Singapore witnessed a slight increase in December 2023, reaching 79,800. This uptick, coupled with low unemployment rates, reflects a moderately tight labor market.
The ratio of job vacancies to unemployed persons rose to 1.74 in December 2023, indicating favorable conditions for job seekers, said MOM in its report.
Looking ahead, Singapore anticipates a strengthening of labor demand, aligning with forecasts of improved economic growth prospects for 2024, said the ministry. Forward-looking data also reveal optimistic signals, with more employers expressing intentions to hire or increase wages in the coming year.
