The Singapore labour market continued its expansion in the second quarter of 2024, with total employment growth more than doubling compared to the previous quarter, according to the latest report from the Ministry of Manpower (MOM).
Total employment rose by 11,300 in 2Q 2024, surpassing the 4,700 increase recorded in 1Q 2024.
This surge in employment was predominantly driven by non-resident workers, whose numbers increased by 12,000, particularly in the Construction and Manufacturing sectors.
However, resident employment saw a slight decline of 600 as various sectors, such as Retail and Administrative & Support Services, experienced seasonal reductions.
According to MOM report, in the first half of 2024, total employment has grown by 16,000, with 4,900 from resident employment and 11,200 from non-resident categories.
Here are four important points from the “Labour Market Report 2Q 2024”:
- Total Employment Growth: Total employment in Singapore saw a significant increase of 11,300 in 2Q 2024, more than doubling the growth from 1Q 2024, driven largely by a rise in non-resident employment. The overall growth for the first half of 2024 was 16,000, with non-residents contributing 11,200 and residents 4,900.
- Strong Labour Demand and Unemployment Rates: The labour market remains tight, with a job vacancy-to-unemployed ratio of 1.67 in June 2024. Unemployment rates improved in June 2024 (overall: 2.0%, resident: 2.7%, citizen: 2.8%), indicating a robust labour market despite slight increases in retrenchments.
The report highlighted strong demand for labour, reflected in a stable number of job vacancies, which exceeded the number of unemployed individuals for the first time, resulting in a job vacancy-to-unemployment ratio of 1.67 as of June 2024.
Unemployment rates improved overall, with the national average dropping to 2.0% in June 2024. Resident unemployment rates also decreased to 2.7%, suggesting a tightening labour market. Long-term unemployment remained minimal, with the long-term resident unemployment rate steady at 0.8%.
- Sectoral Employment Trends: Resident employment grew in outward-oriented sectors such as Financial Services and Information & Communications, but there were seasonal declines in Retail and Administrative Support Services. Non-resident employment, primarily in Construction and Manufacturing, rebounded as firms adjusted to workforce needs.
Despite the positive trends in employment, retrenchments increased slightly from 3,030 in 1Q 2024 to 3,270 in 2Q 2024, mainly due to business restructuring rather than economic downturns.
- Policy Changes for Foreign Workers: The government has introduced several measures to enhance the quality of foreign workers, including increasing qualifying salaries and implementing the COMPASS framework for hiring foreign professionals. This aims to ensure that businesses hire skilled foreign workers while also supporting resident employment.
The Ministry of Manpower (MOM) reported that the total number of S Pass and Employment Pass (EP) holders declined in the first half of 2024 as companies adjusted their workforces in response to the post-pandemic landscape and made changes to policies aimed at enhancing the quality of foreign labor.
The ministry indicated that, as the economy improves, the number of higher-skilled foreign workers is anticipated to rise in the medium term, provided that macroeconomic conditions remain favorable.
Notably, more than half of all retrenched residents managed to secure new employment within six months, although the re-entry rate saw a dip from 59.4% to 55.0% from the previous quarter.
The MOM anticipates that the labour market momentum will continue, with expected growth in resident employment particularly in sectors such as Financial & Insurance Services, Information & Communications, and Professional Services.
“Retrenchments due to concerns of recession or downturn in the sector have declined, as local external demand outlook is expected to be resilient for the rest of 2024,” said MOM.
The upcoming Formula One Singapore Grand Prix and year-end festivities are also expected to contribute positively to job creation.
Looking toward the longer term, the government is preparing to address the anticipated moderation in resident employment growth due to Singapore’s high labour force participation rate. Efforts include attracting global talent and foreign investments through updated foreign workforce policies.
Initiatives such as the introduction of the overseas Networks & Expertise (ONE) Pass and the point-based Complementarity Assessment (COMPASS) framework aim to enhance the quality of the foreign workforce while ensuring that businesses maintain a strong local core.
Furthermore, the MOM is focused on preparing Singaporeans for a rapidly evolving job market by providing support and resources to equip workers with necessary skills through initiatives like SkillsFuture training subsidies and enhanced Career Conversion Programmes.
For more information, visit: Ministry of Manpower
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