In 2023, Singapore experienced a notable increase in employment, with 88,400 more people finding jobs. This growth was mainly among foreigners, especially in sectors like construction and manufacturing. For residents, which include Singaporeans and permanent residents, employment growth was observed in financial and professional services.
The Ministry of Manpower (MOM) released a report on the labour market for the fourth quarter of 2023. It showed that while the employment rate for residents remained high and the resident unemployment rate stayed low at 2.8%, the number of retrenchments more than doubled compared to the previous year, reaching 14,590.
Experts said the slower employment growth compared to earlier post-pandemic periods is due to global economic restructuring, particularly in industries like technology. Despite this, job vacancies slightly increased in December 2023 to 79,800 after a prolonged decline, especially in higher-paying sectors such as finance, insurance, and professional services – from 5,100 to 7,200 and from 5,600 to 6,200, respectively.
However, the proportion of workers finding new jobs within six months of being laid off decreased slightly. This decline could partly be attributed to more affected workers being older, as older workers generally take longer to secure new employment. Nevertheless, about 75% of workers managed to find new jobs within a year, said the minister.
“Notably, the re-entry rate of mature workers aged 40 and above stayed below the overall rate, registering at 54.6% in 2023. In this regard, the new SkillsFuture Level-Up Programme announced in Budget 2024, targeted at Singaporeans aged 40 and above, can help impacted mid-career and mature workers to update their skills and remain relevant amid a disruptive economic environment.”
Despite the challenges, MOM expects labour demand to strengthen alongside improved economic growth prospects for 2024. While retrenchments may increase slightly, the majority of retrenched residents are expected to find new employment within six months, given the availability of job vacancies and positive hiring expectations among employers.
Experts suggest that Singapore’s labor market is returning to normal conditions after the disruptions caused by the COVID-19 pandemic. With improved economic prospects and positive business sentiments, there is cautious optimism that the labor market will remain reasonably stable in the coming year, barring any major economic setbacks.
