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Some of this growth can be attributed to resident employment going up in financial services, information & communications, and more.
Singapore's Ministry of Manpower released its labour market advance release for Q2 2024, revealing that the growth in total employment in Q2 (by 11,300) exceeded the growth in Q1 2024 (4,700).
The report indicated that hiring and wage expectations remained the same as in Q1 2024.
This stability is expected to keep the labour market strong, with wages and employment continuing to grow together. As a result, Singapore's economy is expected to gradually improve.
The breakdown of the report are as follows:
Employment
The total employment in Q2 2024 grew by 11,300, higher than that in Q1 2024 (4,700).
- Resident employment:
- Resident employment continued to grow in sectors like financial services, information & communications, health & social services, and professional services.
- Overall, resident employment saw a slight decline due to a seasonal drop in retail trade. This is due to employers hiring more workers in the fourth quarter for year-end festivities.
- Non-resident employment:
- Non-resident employment increased after a decline in the previous quarter, accounting for all the job growth in Q2 2024.
- The growth was mainly among lower-skilled Work Permit (WP) Holders in non-PMET roles in construction and manufacturing, sectors that residents usually do not work in.
- The increase in construction jobs reflects firms adjusting to changes in the Dependency Ratio Ceiling.
- Overall trend:
- The rebound in non-resident employment shows a continued demand for labour.
- The slight contraction in resident employment is typical for the second quarter.
Overall, for the first half of 2024, employment grew for both residents and non-residents.
Unemployment
Unemployment rates declined in June 2024 compared to May 2024:
- Overall: from 2.1% to 2.0%
- Residents: from 2.9% to 2.7%
- Citizens: from 3.0% to 2.8%
These rates remained within the range typical of non-recessionary periods.
Retrenchment
The number of retrenchments remained steady in Q2 2024 at 3,100, compared to 3,030 in the previous quarter.
Retrenchment levels were stable across most sectors, with business reorganisation and restructuring continuing to be the main reasons for layoffs in Q2 2024.
What to expect for Singapore's labour market in Q3 2024
MOM's forward-looking polls indicate that hiring and wage expectations for Q3 2024 will remain consistent with this quarter. This suggests that the labour market momentum will likely be maintained.
Both wages and employment are expected to continue improving alongside a gradual improvement in Singapore’s economy.
However, with slowing resident workforce growth and low resident unemployment rates, the increase in resident employment is expected to become more muted.
The Labour Market Report for the Second Quarter of 2024 is scheduled for release in mid-September 2024.
READ MORE: About 98% of PMETs in Singapore were offered re-employment in 2022 and 2023: MOM
Infographics / MOM Facebook
Lead image / MOM Labour Market advance release Q2 2024
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