At Reeracoen, we strive to provide valuable insights into Singapore's evolving labour market landscape. The first quarter of 2024 brought notable developments that shed light on employment trends, retrenchments, and overall workforce dynamics. Let's delve into the key findings from the latest Ministry of Manpower (MOM) report.

Expansion with Moderation

The advance estimates for Q1 2024 revealed a continued expansion of the labour market, albeit at a moderated pace compared to previous quarters. This trend reflects the cooling labour demand observed throughout 2023, amid lingering downside risks in the global economy. Despite this moderation, total employment (excluding Migrant Domestic Workers) grew by 4,900, indicating a steady increase in resident employment against a backdrop of low unemployment rates.

Resident Employment Driving Growth

One of the highlights of Q1 2024 was the significant increase in resident employment, surpassing previous quarters in 2023 and comparable to non-recessionary periods. Growth sectors such as Financial Services, Health & Social Services, and Public Administration & Education were key contributors to this rise, offsetting seasonal declines in Retail Trade, Food & Beverage Services, and Accommodation.

Challenges in Non-Resident Employment

Conversely, non-resident employment contracted for the first time since Q3 2021 due to cooling labour demand, particularly in sectors like Construction. The reduction in Construction sector employment can be attributed to adjustments following the revised Dependency Ratio Ceiling (DRC), underscoring the sector's adaptation to regulatory changes.

Decline in Retrenchments

Encouragingly, retrenchments declined for the second consecutive quarter, dropping to 3,000 in Q1 2024. Business reorganisation and restructuring remained the primary reasons for retrenchments, highlighting ongoing transformation efforts within businesses.

Unemployment Rates and Future Outlook

Although unemployment rates saw a slight uptick in March 2024, they remained within pre-pandemic ranges. MOM's forward-looking polls indicate improved hiring demand, with firms expressing intentions to hire in the coming months. Despite this positive outlook, wage improvements may slow down, reflecting evolving economic conditions.

Supporting Singapore's Workforce

Amidst economic uncertainties, Reeracoen advocates for leveraging available programmes to enhance workforce competitiveness and resilience. Initiatives such as Workforce Singapore's Career Conversion Programmes and Mid-Career Pathways Programme empower workers to upskill and adapt to changing job demands. Employers are encouraged to explore Jobs Transformation Maps (JTMs) to pre-emptively redesign job roles and promote productivity.

Looking Ahead

As Singapore's economy anticipates improvements in 2024, labour market dynamics are poised for strengthening. MOM's forthcoming Labour Market Report for Q1 2024, slated for mid-June, will provide comprehensive insights into employment trends, sectoral breakdowns, and workforce dynamics.

For more information and detailed statistics, please visit the Ministry of Manpower's Research and Statistics Department website.

Stay tuned for further updates on Singapore's evolving labour market landscape from Reeracoen.

By providing this comprehensive overview, we aim to keep our readers informed and prepared to navigate Singapore's dynamic employment landscape effectively. Reeracoen remains committed to supporting businesses and individuals in achieving their employment goals amidst evolving market conditions.

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Reference Links:

https://www.mom.gov.sg/newsroom/press-releases/2024/0430-labour-market-advance-release-first-quarter-2024

https://www.channelnewsasia.com/singapore/mom-labour-force-report-advance-release-q1-2024-4302461

https://vulcanpost.com/858882/mom-employment-report-retrenchment-hiring/

https://www.businesstimes.com.sg/singapore/singapore-s-employment-growth-eases-q1-tighter-foreign-worker-quotas-kick-construction-firms