Job vacancies fall sharply, but openings still outnumber unemployed as high-skilled sectors drive Q3 employment growth

SINGAPORE: In an encouraging sign for the Singaporean job market, 67% of employers in the transport, logistics, and automotive sectors expressed optimism for hiring in the first quarter of 2025.

According to the Singapore Business Review, this marks a significant 22-percentage-point (pp) surge compared to the previous quarter, according to ManpowerGroup’s latest findings.

The healthcare and life sciences sector ranks second in employer confidence, with 40% projecting growth, while financial services and real estate follow closely behind at 36%.

Other sectors showing promising employment outlooks include consumer goods and services (33%), communication services (29%), and information technology (28%).

However, not all industries are seeing the same level of optimism. Employers in the energy and utilities sector reported a negative outlook of -29%, signalling caution in hiring. The industrial and materials sector follows with a modest 10% outlook.

In a statement reported by The Straits Times, the Ministry of Manpower (MOM) said:

“The labour market is expected to remain tight with low unemployment rates; however, this pressure may ease gradually as more job vacancies are filled, and the ratio of job vacancies to unemployed individuals moves closer to pre-pandemic levels.”

Brian Lee, an economist at Maybank Investment Banking Group, noted that employers may have successfully filled previously vacant positions with the return of foreign workers following the pandemic.

This trend is particularly evident in roles that locals are less inclined to take on.

In line with last quarter’s trends, resident employment—comprising Singaporeans and permanent residents—has seen robust growth in higher-skilled and higher-paying sectors.

In the third quarter, resident employment increased by 4,000, reversing a seasonal decline of 600 in the previous quarter, thanks to strong hiring in outward-oriented industries such as information and communications, professional services, and financial services.

These findings provide a glimpse into the evolving job market in Singapore, with key sectors displaying varied levels of confidence as businesses plan for the year ahead.