Singapore’s labour market displayed resilience and inclusivity in 2024 despite the challenges posed by an ageing population and shifting global economic conditions. Key insights from the Ministry of Manpower (MOM)’s Labour Force in Singapore Advance Release 2024 report reveal encouraging trends and highlight areas for growth. Here's what you need to know:

1. Workforce Expansion and Inclusivity

Singapore’s workforce grew in 2024, with notable achievements in inclusivity:

• Employment of Persons with Disabilities (PWDs): The employment rate for PWDs aged 15 to 64 rose to 33.6%, reflecting ongoing efforts to enhance employer support and training. The government aims to increase this rate to 40% by 2030.
• Rising Participation Among Seniors: The labour force participation rate for those aged 55 and over increased, supported by initiatives to enhance senior employability.

Despite these gains, the overall labour force participation rate declined slightly to 68.2%, attributed to the growing proportion of seniors in the population.

2. Income Growth: A Rebound Year

2024 marked a turnaround for incomes:

• Median Monthly Income: Nominal incomes rose to S$5,500 from S$5,197 in 2023, reflecting a 5.8% growth.
• Real Income Growth: As inflation eased, real incomes rebounded (Median: +3.4%, 20th Percentile: +4.6%), recovering from declines in 2023.
• Inclusive Growth: Lower-income earners saw faster income growth than the median, narrowing the income gap. This trend is expected to continue as Progressive Wage Model (PWM) requirements are implemented.

3. Labour Underutilisation and Unemployment Remain Low

Singapore maintained low rates of labour underutilisation and unemployment:

• Unemployment Rates: PMETs experienced a 2.7% unemployment rate, while non-PMETs stood at 3.4%. Long-term unemployment rates were 0.7% for PMETs and 0.5% for non-PMETs.
• Discouraged Workers: The number of discouraged workers fell to 7,400 in 2024, down from 9,100 the previous year, indicating improved job prospects.

4. Job Mobility and Sectoral Shifts

Workers who changed industries often reaped financial benefits:

• Higher Earnings for Job Switchers: Nearly 60% of workers transitioning to different industries saw income increases, with many moving into high-growth sectors like Financial Services and Information & Communications.
• Shift in Employment Patterns: The share of self-employed residents declined as more individuals opted for salaried roles, drawn by stability and benefits.

5. Challenges of an Ageing Population

Singapore faces demographic pressures:

• Declining Old-Age Support Ratio: The ratio of residents aged 20–64 to those aged 65+ has halved over the past decade, falling to under 4 in 2024. Projections show it could drop to 2.7 by 2030.
• Foreign Workforce as a Buffer: To maintain economic support, the country continues to rely on foreign workers and investments.

6. Policy Support for Sustained Growth

The government is implementing various initiatives to address demographic and workforce challenges:

• Upskilling and Reskilling: Workforce Singapore’s Career Conversion Programme and Mid-Career Pathways Programme provide training and industry exposure, with up to 90% salary support for participants.
• Flexible Work Arrangements: From December 2024, Tripartite Guidelines on Flexible Work Arrangements will promote work-life balance, supporting caregivers and other groups.
• Workplace Fairness Legislation: This new policy aims to strengthen protections against workplace discrimination and foster inclusivity in hiring practices.

7. Looking Ahead

While 2024 was a strong year for Singapore’s labour market, challenges remain:

• Global Economic Uncertainty: Geopolitical risks and restructuring in outward-oriented industries, such as Information & Communications, pose risks.
• Demographic Pressures: Continued innovation in employment policies and workplace practices will be essential to sustain growth.

Employers and employees are encouraged to leverage government programmes, embrace upskilling, and adapt to evolving workforce trends to remain competitive in a dynamic economic landscape.

For more insights, read the full Labour Force in Singapore Advance Release 2024 report available at the Ministry of Manpower website.

 

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Reference Links:

https://www.mom.gov.sg/newsroom/press-releases/2024/1128-labour-force-in-singapore-advance-release-2024

https://www.humanresourcesonline.net/an-overview-of-singapore-s-labour-force-in-2024

https://www.businesstimes.com.sg/singapore/singapores-real-incomes-rebound-2024-inflation-eases-real-wage-growth-last-5-years-still-low

https://hrmasia.com/singapores-labour-market-sees-growth-and-challenges-in-2024/

https://hrsea.economictimes.indiatimes.com/news/industry/singapore-sees-4-6-wage-boost-for-low-income-workers-mom-survey/115873435