The Ministry of Manpower said it expects the labour market to continue to expand in 2025, at least for the first quarter. — The Straits Times
SINGAPORE: Singapore’s labour market continued to expand in 2024 on the back of strong economic performance and positive business sentiments, though it faces more risks in 2025 from global uncertainties and trade tensions.
There were also indications in the final quarter of 2024 of more challenges for the job market – as quarterly retrenchments ticked up and the year-on-year job vacancy ratio dipped.
For the whole of 2024, the number of employed residents – meaning Singapore citizens and permanent residents – grew by 8,800 in 2024, reversing the decline of 4,600 over the previous year, the Manpower Ministry (MOM) said on March 19 in its fourth-quarter labour market report.
Singapore citizens make up the overwhelming majority – around 85% – of residents here.
Even as more residents found jobs, the labour market remained tight though it moderated over the course of 2024, MOM said.
There were 1.64 vacancies for every unemployed person in December 2024. The ratio is up from 1.32 in September 2024, but lower than the 1.76 posted in December 2023.
The number of job vacancies rose from 61,500 in September 2024 to 77,500 in December 2024 as well.
About 70% of the vacancies were for jobs typically filled by residents. These roles include financial analysts, financial and investment advisers, software developers and management consultants, according to Ang Boon Heng, director of MOM’s manpower research and statistics department.
“It suggests to us that these residents are filling in the higher-skilled and higher-paying jobs,” Ang told reporters in a meeting.
The number of employed foreigners grew by a net 35,700 in 2024, slowing down to less than half the pace of 83,500 in 2023.
Work permit holders formed the bulk of the growth, with their numbers expanding by 39,300 in 2024.
These work permit holders filled blue-collar jobs that residents, which refer to Singaporeans and permanent residents, were less likely to take, MOM said.
Meanwhile, the number of Employment Pass (EP) and S Pass holders ticked down in 2024, following significant increases in the previous two years.
MOM attributed this to firms adjusting to the Complementarity Assessment Framework (Compass) and the higher qualifying salary requirements for EP and S Pass holders. Compass is a points-based framework rolled out in September 2023 for new EP applications, and a year after for renewals.
The net employment growth of 8,800 among residents was driven by expansion in the number of residents who gained employment in higher-skilled sectors, MOM said.
This includes 5,300 in financial and insurance services, 5,200 in health and social work, 5,000 in professional services and 4,200 in information and communications.
Conversely, MOM also noted “notable declines” in resident employment in lower-skilled sectors such as food and beverage services by 2,100 workers, as well as 700 workers in administrative and support services.
Employment in total grew by 44,500 in Singapore in 2024, compared with 78,800 in 2023.
The unemployment rate among Singaporeans and residents remained “low and stable” in December 2024, as did the resident long-term unemployment rate.
In December 2024, the unemployment rate came in at 1.9% overall, 2.8% for residents and 2.9% for citizens.
Meanwhile, the resident long-term unemployment rate – those jobless for at least 25 weeks – held steady from September 2024 at 0.8%.
There were fewer retrenchments in 2024, at 13,020, compared with 14,590 in 2023. Similarly, the number of employees placed on a shorter work week or temporary layoff declined from 3,110 in 2023 to 2,210 in 2024.
However, on a quarterly basis, the number of retrenchments increased from 3,050 in the July to September quarter to 3,680 in the October to December quarter.
There were several “high-profile retrenchments coming from certain companies” that contributed to the increase, said Ang. MOM said the increase came mainly from the financial and insurance sector, where it rose from 270 to 620, as a higher proportion of firms retrenched due to high costs.
Additionally, the number of employees placed on short work-week or temporary layoffs rose to 660, but this remained low at pre-pandemic levels of less than 1,000, MOM said.
Among retrenched residents, the rate of re-entry into employment six months post-retrenchment dropped slightly, from 60.4% in the third quarter to 58.1% in the fourth quarter.
On the outlook for the labour market in 2025, MOM said it “expects the labour market to continue to expand in 2025, at least for the first quarter”. — The Straits Times/ANN
