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.
The number of employed residents here grew by 8,800 in 2024, reversing the decline of 4,600 over the previous year.
Even though more residents, which refer to Singapore citizens and permanent residents, found jobs, the Ministry of Manpower (MOM) said the labour market remained tight in the fourth quarter of 2024.
There were 1.64 vacancies for every unemployed person in December 2024, according to MOM’s fourth-quarter labour market report released on March 19.
The number of job vacancies rose from 61,500 in September 2024 to 77,500 in December 2024. About 70 per cent of the vacancies were for jobs typically filled by residents.
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 past 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.
GRAPHIC: MINISTRY OF MANPOWER
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.
In total, employment grew by 44,500 in Singapore in 2024, compared with 78,800 in 2023.
MOM said the labour market remained tight but has moderated over the course of 2024.
The unemployment rate among Singaporeans and residents remained “low and stable” in December 2024, as did the resident long-term unemployment rate.
GRAPHIC: MINISTRY OF MANPOWER
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 lay-off declined from 3,110 in 2023 to 2,210 in 2024.
These figures indicate the overall positive business and economic sentiments in 2024, MOM said.
However, the number of retrenchments increased from 3,050 in the third quarter to 3,680 in the fourth quarter.
MOM said the increase mainly lay in financial and insurance services, which rose from 270 to 620, as a higher proportion of firms retrenched due to high costs.
Along with the increase in the number of retrenchments, 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 added.
Among retrenched residents, the rate of re-entry into employment six months post-retrenchment dropped slightly, from 60.4 per cent in the third quarter to 58.1 per cent in the fourth quarter.
GRAPHIC: MINISTRY OF MANPOWER
Job vacancy rates rose from 2.7 per cent to 3.1 per cent between September 2024 and December 2024.
The ratio of job vacancies to unemployed persons also rose to 1.64 in December 2024, from 1.32 in September 2024, but MOM notes this was lower than the 1.76 posted in December 2023.
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.
“However, should trade tensions intensify and slow down the Singapore economy, labour market performance may soften notwithstanding labour market tightness.”
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