The Singapore labour market continued to show resilience in 2024, with retrenchments declining and resident employment improving, despite global uncertainties. While the fourth quarter (Q4) saw a slight increase in retrenchments, overall job market stability and employment growth remained positive. Let’s delve into the key employment trends and what they mean for job seekers and businesses in Singapore.

Fewer Retrenchments, Improved Job Market Stability

According to the Ministry of Manpower (MOM), the total number of retrenchments in 2024 dropped to 12,930, down from 14,590 in 2023. This translates to an incidence rate of 5.8 retrenched per 1,000 employees, compared to 6.7 in 2023. The primary reason cited for layoffs was business restructuring, rather than economic downturns or industry-specific declines.

Despite the overall decline, retrenchments in Q4 increased to 3,600, up from 3,050 in Q3. The services sector accounted for the bulk of job losses with 2,800 retrenchments, followed by manufacturing (700 job cuts) and construction (100 job cuts). The measured approach to workforce adjustments indicates that businesses are optimising operations rather than responding to widespread economic distress.

Employment Growth: Moderation but Stability

Total employment grew by 45,500 in 2024, lower than the 78,800 jobs added in 2023. This slowdown was largely due to moderated hiring of non-resident workers, particularly in the construction sector, which remains the largest driver of foreign employment. Meanwhile, resident employment growth rebounded after a decline in 2023, supported by strong hiring in high-skilled sectors such as:

• Professional Services
• Financial Services
• Health & Social Services
• Retail Trade (boosted by seasonal hiring in Q4)

While non-resident employment remained concentrated in lower-skilled jobs, sectors like Information & Communications and Insurance Services experienced a decline in foreign employment, aligning with broader industry shifts.

Unemployment: Slight Uptick but Within Healthy Ranges

Unemployment rates remained stable throughout 2024, though there was a marginal increase:

• Overall unemployment rate: 1.9% (unchanged from 2023)
• Resident unemployment rate: 2.8% (up from 2.7%)
• Citizen unemployment rate: 2.9% (unchanged from 2023)

These figures remain within the non-recessionary range, indicating a steady labour market.

Optimism for 2025: Hiring and Wage Growth Expected

Despite global uncertainties, MOM’s forward-looking surveys suggest growing business confidence. As of December 2024:

• 46% of companies planned to increase hiring, up from 43% in September.
• 32% of firms intended to raise wages, double the 16% in September.

These indicators point to a tight labour market and ongoing demand for skilled talent, making upskilling and career agility more important than ever for job seekers.

What This Means for Job Seekers and Employers

For job seekers, the demand for high-skilled professionals remains strong. Industries such as financial services, healthcare, and professional services continue to offer robust employment opportunities. Upskilling in digital literacy, finance, and data analytics can enhance employability in these fields.

For employers, labour constraints amid a shrinking workforce mean investing in talent development is crucial. Companies should maximise the potential of their existing workforce by adopting job transformation strategies and workplace automation to boost productivity.

Conclusion

Singapore’s labour market in 2024 demonstrated stability, with declining retrenchments and a resilient employment landscape. While job growth has moderated, forward-looking indicators suggest a positive hiring outlook for 2025, particularly in high-skilled sectors. Employers and job seekers alike must stay adaptable, leveraging training and career development opportunities to navigate evolving workforce trends.

As we move into 2025, companies looking to attract top talent should focus on competitive salaries, career progression opportunities, and a dynamic work environment. Meanwhile, job seekers should proactively enhance their skills and stay informed about emerging industry demands to remain competitive in a shifting job market.

At Reeracoen, we specialise in connecting top talent with leading companies across Singapore and Asia. Whether you are an employer looking for the right hire or a job seeker aiming for your next career move, our expert recruitment team is here to help. Explore opportunities with us today and take the next step towards success!

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References:

https://www.mom.gov.sg/newsroom/press-releases/2025/0127-labour-market-advance-release---4q-2024

https://stats.mom.gov.sg/Pages/homepage.aspx

https://stats.mom.gov.sg/iMAS_Tables1/LabourForce/LabourForce_2024/mrsd_2024Labourforce_survey_highlights.pdf

https://www.straitstimes.com/business/fewer-spore-retrenchments-in-2024-than-in-2023-resident-employment-grew-mom

https://www.humanresourcesonline.net/retrenchment-rates-in-singapore-tick-up-in-q4-2024-largely-due-to-business-reorganisation

https://www.businesstimes.com.sg/singapore/singapore-sees-fewer-job-cuts-slower-employment-growth-2024

https://www.staffingindustry.com/news/global-daily-news/singapore-unemployment-remains-low

https://hrmasia.com/singapore-labour-landscape-faces-challenges-amidst-surge-in-retrenchments/

https://www.hcamag.com/asia/specialisation/recruitment/more-employers-to-hike-headcount-wages-in-2025-mom/522348