Total employment (excluding MDWs) in Singapore grew by 4,900 in Q1 2024: MOM

This figure was lower than what was observed in Q3 2023 (7,500), and was attributed to an increase in resident employment.

Singapore's Ministry of Manpower (MOM) has released its Labour Market Advance Release First Quarter 2024. 

The statistics gathered have been broken down into three subsections — employment, unemployment, and retrenchment.

Below are the key findings from the report: 

Employment

• Total employment, excluding migrant domestic workers, grew by 4,900 in Q1 2024, which was lower than in Q3 2023 (7,500) and was attributed to an increase in resident employment.
• This increase in resident employment was higher than that in all quarters of 2023, but comparable to those in non-recessionary periods.

By sector: 

• The increase in resident employment was seen mainly in the following sectors:

1. Financial services
2. Health & social services 
3. Public administration & education

• The employment growth in these sectors outweighed the seasonal declines in the following sectors following the end of the festive period: 

1. Retail trade,
2. Food & beverage services
3. Accommodation

• Non-resident employment contracted for the first time since Q3 2021, largely due to construction (mostly Work Permit holders), accounting for a significant portion of Work Permit Holders, and is traditionally the main driver of non-resident employment growth.

• Employment in the sector fell for the first time since Q4 2021, as construction firms adapted to a reduction in the sector’s dependency ratio ceiling from 1:7 to 1:5 with effect from 1 January 2024.

• Smaller declines were also seen in outward-oriented sectors such as: 

1. Manufacturing
2. Information & communications

Retrenchments 

• Retrenchments fell for the second consecutive quarter, from 3,460 in Q4 2023 to 3,000 in Q1 2024.



By sector: 

• The decline was mainly from the following sectors:

1. Electronics manufacturing 
2. Wholesale trade

• Business reorganisation/restructuring remained the top reason for retrenchments in the first quarter of 2024, and this remained unchanged from previous non-recessionary years.

• While the number of retrenchments in most other sectors either held steady or declined, retrenchments rose slightly in the following sectors: 

1. Fabricated metals manufacturing
2. Professional services
3. IT service

Unemployment

• The unemployment rates slightly increased in March of 2024 2024 (overall: 2.1%; residents: 3.0%; and
  citizens: 3.1%).
• However, they remained within the range observed during non-recessionary periods.
• Amid higher retrenchments in the second half of 2023, the slight rise in unemployment rate was "not unexpected".
• However, as retrenchments have eased since Q1 2024 and employment continues to grow, there is a less likelihood of the unemployment rate spiking.

Hiring & waging expectations for the next three months:

• According to MOM's predictive polls, there are continued improvements in employment, as the proportion of firms citing an intention to hire in the next three months rose from 47.7% to 50.7%.
• However, MOM predicts that wage improvements could slow as the proportion of firms with an intention to raise wages dropped from 32.6% to 26.1%. 

In response to the release, NTUC Assistant Secretary-General Patrick Tay shared in a Facebook post: "Moving ahead, companies and industries will continue to restructure, reorganise, restrategise, and transform as they face both cyclical and structural challenges with the various Geo-political and global issues. 

"This is further accentuated by the advent of the twin developments of sustainability and generative AI. 

"With manufacturing output not showing any signs of a significant upturn thus far, we expect the second quarter will continue to mirror that of this first quarter." he commented.

ASG Tay added that it is therefore imperative for companies and workers to continue to ride the wave of changes and new opportunities created with the developments and upskill, reskill, and second-skill to stay ready, relevant, and resilient.

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READ MORE : Employers in Singapore encouraged to review their employment benefits to better attract & retain talent: MOM

Lead image / MOM Facebook