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Total employment saw an increase of 24,100 in Q3, more than doubling the growth of 11,300 in the previous quarter.
According to advance estimates by the Ministry of Manpower (MOM), Singapore's labour market continued to expand in the third quarter of 2024 (Q3 2024), in line with the sustained economic growth for the period.
Of this, total employment continued to improve, with increases coming from both residents and non-residents, while unemployment rates and retrenchments remained low. Employment is expected to continue to expand in the next quarter, amid a tight labour market.
Total employment growth more than doubled in Q3 2024
Total employment saw an increase of 24,100 in Q3, more than doubling the growth of 11,300 in the previous quarter. This can be attributed to the rise in resident and non-resident employment, which both grew at a faster pace in 3Q 2024 compared to 2Q 2024.
Breaking this down even further, resident employment continued to see expansion in growth sectors such as:
- Information & communications,
- Professional services, and
- Health & social services.
MOM asserts: "This suggests a steady supply of quality jobs and favourable employment prospects for resident workers."
While there were slight declines observed in food & beverage services and retail trade, resident employment in these sectors is expected to pick up in the final quarter of the year as businesses typically ramp up hiring in light of the festive season.
Continuing the trend from the previous quarter, a majority of the growth in non-resident employment in Q3 2024 was driven by Work Permit Holders (WPHs) in non-PMET roles. This includes jobs in the construction, manufacturing, and administrative and support services (e.g. security and cleaning & landscaping) sectors.
According to MOM, this is due to the fact that there are generally not enough resident workers for such roles. As a result, businesses bring in WPHs to meet the manpower shortage.
Meanwhile, employment among higher-skilled pass types was stable in 3Q 2024.
Unemployment rates remained low
Unemployment rates stayed low in September 2024, where the overall rate dropped to 1.8% from 1.9% in August the previous month. Meanwhile, the rates for residents and citizens remained stable at 2.6% and 2.7%, respectively.
Number of retrenchments declined
Coming to retrenchments — the number of retrenchments stood at 2,900 in Q3 2024, down from 3,270 in Q2 2024. More specifically, retrenchments decreased or remained stable across sectors, with businesses reorganising/ restructuring remaining the top reason for retrenchments in Q3 2024.
Overall, advance estimates show an expanding labour market in Q3 2024, marked by low unemployment and retrenchment rates.
Despite a decline in hiring and wage expectations among companies for Q4 2024 – reflecting ongoing unstable export-oriented sectors – employment is still expected to continue to expand in the next quarter, with the labour market to remain tight.
This outlook is bolstered by an upward revision to the GDP growth forecast and anticipated year-end hiring for the festive period.
Lead image / MOM
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