SINGAPORE: The number of retrenchments fell in 2024 compared with the year before, while employment growth slowed, according to advance labour estimates released by the Ministry of Manpower (MOM) on Monday (Jan 27).
The number of retrenchments in 2024 was 12,930, dipping from the 14,590 in 2023. There were no significant increases across sectors, said MOM.
The incidence of retrenchment also declined from 6.7 retrenched per 1,000 employees in 2023 to 5.8 in 2024.
Both the total number of layoffs and the incidence of retrenchments remained within non-recession norms.
"Business reorganisation or restructuring was the primary reason for retrenchments in 2024," said the ministry.
The last quarter of the year saw a rise in layoffs to 3,600 from 3,050 in the third quarter.
"Retrenchments increased in the manufacturing and services sectors, while they remained relatively stable in the construction sector," MOM said in its report.
Singapore's annual retrenchment figures from 1998 to 2024. (Image: Ministry of Manpower)
According to the estimates, Singapore’s unemployment situation remained "relatively stable and low" throughout 2024.
The annual unemployment rate at 2 per cent was "broadly consistent" with 2023, when it was 1.9 per cent.
The resident unemployment rate rose slightly from 2.7 per cent in 2023 to 2.8 per cent in 2024, while the citizen unemployment rate remained unchanged at 2.9 per cent.
Unemployment rates for residents and citizens rose from September to October 2024, increasing from 2.6 per cent to 2.8 per cent and from 2.7 per cent to 2.9 per cent respectively.
These rates held steady in November and December, within the typical range for non-recession periods, said MOM. The overall unemployment rate remained unchanged at 1.9 per cent.
Singapore’s total employment continued to grow in 2024 although the growth slowed.
Total employment growth in 2024 is expected to be 45,500, lower than the 78,800 increase in 2023, when the number of work permit holders rose significantly.
Resident employment grew in 2024 after registering a decline in the previous year.
In 2024, more residents were employed in higher-skilled sectors including professional services, financial services as well as in health and social services.
“On the other hand, non-resident employment growth moderated in 2024 compared to 2023, with hiring in construction driving up employment of work permit holders,” said MOM.
Total employment growth fell in the fourth quarter to 8,700 from 22,300 in the third quarter. However, this was still higher compared with the last quarter in 2023, when it was 3,900.
Demand for residents in growth sectors remained strong, with employment increases in key sectors such as professional services, financial services, and health and social services.
"There was also an uptick in retail trade due to year-end seasonal hiring, following declines in earlier quarters," it added.
Similar to past quarters, non-resident employment growth was largely driven by the construction sector, where employers are unable to find enough resident workers to fill positions.
Non-resident employment declined in outward-oriented sectors such as information and communications, and insurance services.
With the improving economic environment, Singapore’s labour market is expected to maintain its growth trajectory going forward, said MOM.
Polls by the ministry showed that the proportion of companies expecting to hire more workers rose from 43 per cent in September to 46 per cent in December.
The number of companies planning to raise wages also increased, doubling from 16 per cent in September to 32 per cent in December.
"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," said MOM.
It noted that employers need to recognise increasing manpower constraints as the resident workforce ages and shrinks in the longer term.
"With an already high resident labour force participation rate by international standards and low resident unemployment, there is limited headroom for resident employment to keep expanding," said the ministry.
"Employers need to maximise the potential of their employees by investing in human capital development.
"To maintain Singapore’s economic competitiveness and complement our resident workforce, we will need to remain open to foreign investments and global talent, which will in turn generate more opportunities for local businesses and quality jobs for Singaporeans."
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The number of retrenchments in 2024 was 12,930, dipping from the 14,590 in 2023. There were no significant increases across sectors, said MOM.
The incidence of retrenchment also declined from 6.7 retrenched per 1,000 employees in 2023 to 5.8 in 2024.
Both the total number of layoffs and the incidence of retrenchments remained within non-recession norms.
"Business reorganisation or restructuring was the primary reason for retrenchments in 2024," said the ministry.
The last quarter of the year saw a rise in layoffs to 3,600 from 3,050 in the third quarter.
"Retrenchments increased in the manufacturing and services sectors, while they remained relatively stable in the construction sector," MOM said in its report.
Singapore's annual retrenchment figures from 1998 to 2024. (Image: Ministry of Manpower)
UNEMPLOYMENT RATES
According to the estimates, Singapore’s unemployment situation remained "relatively stable and low" throughout 2024.
The annual unemployment rate at 2 per cent was "broadly consistent" with 2023, when it was 1.9 per cent.
The resident unemployment rate rose slightly from 2.7 per cent in 2023 to 2.8 per cent in 2024, while the citizen unemployment rate remained unchanged at 2.9 per cent.
Unemployment rates for residents and citizens rose from September to October 2024, increasing from 2.6 per cent to 2.8 per cent and from 2.7 per cent to 2.9 per cent respectively.
These rates held steady in November and December, within the typical range for non-recession periods, said MOM. The overall unemployment rate remained unchanged at 1.9 per cent.
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EMPLOYMENT GROWTH SLOWED
Singapore’s total employment continued to grow in 2024 although the growth slowed.
Total employment growth in 2024 is expected to be 45,500, lower than the 78,800 increase in 2023, when the number of work permit holders rose significantly.
Resident employment grew in 2024 after registering a decline in the previous year.
In 2024, more residents were employed in higher-skilled sectors including professional services, financial services as well as in health and social services.
“On the other hand, non-resident employment growth moderated in 2024 compared to 2023, with hiring in construction driving up employment of work permit holders,” said MOM.
Total employment growth fell in the fourth quarter to 8,700 from 22,300 in the third quarter. However, this was still higher compared with the last quarter in 2023, when it was 3,900.
Demand for residents in growth sectors remained strong, with employment increases in key sectors such as professional services, financial services, and health and social services.
"There was also an uptick in retail trade due to year-end seasonal hiring, following declines in earlier quarters," it added.
Similar to past quarters, non-resident employment growth was largely driven by the construction sector, where employers are unable to find enough resident workers to fill positions.
Non-resident employment declined in outward-oriented sectors such as information and communications, and insurance services.
OUTLOOK
With the improving economic environment, Singapore’s labour market is expected to maintain its growth trajectory going forward, said MOM.
Polls by the ministry showed that the proportion of companies expecting to hire more workers rose from 43 per cent in September to 46 per cent in December.
The number of companies planning to raise wages also increased, doubling from 16 per cent in September to 32 per cent in December.
"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," said MOM.
It noted that employers need to recognise increasing manpower constraints as the resident workforce ages and shrinks in the longer term.
"With an already high resident labour force participation rate by international standards and low resident unemployment, there is limited headroom for resident employment to keep expanding," said the ministry.
"Employers need to maximise the potential of their employees by investing in human capital development.
"To maintain Singapore’s economic competitiveness and complement our resident workforce, we will need to remain open to foreign investments and global talent, which will in turn generate more opportunities for local businesses and quality jobs for Singaporeans."
Also read:
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