SINGAPORE: The Ministry of Manpower (MOM) released data on Tuesday (April 30) showing that the labour market continued to expand in the first quarter of the year, with a growth in total employment, low unemployment rates, and a reduction in retrenchments.
“Our economy is expected to improve in 2024. Labour demand, which tends to lag economic growth, should strengthen correspondingly,” said MOM in its Labour Market Advance Release for the first quarter of 2024.
Despite moderate tightness in the labour market, it continued to expand in the first quarter of the year, although not as much as in the previous quarters, MOM said, noting that downside risks in the global economy remain.
Total employment grew by 7,500 in the last quarter of 2023 and 4,900 in the first quarter of 2024.
MOM noted that Q1 2024’s growth “was wholly supported by an increase in resident employment,” an increase that is higher than previous quarters and comparable to resident employment growth in non-recessionary periods.
MOM noted that non-resident employment decreased for the first time since the third quarter of 2021 because of lower labour demand, although there has been an increase in applications for higher-skilled non-residents, including Employment Pass holders.
Resident employment growth was seen in the Financial Services, Health & Social Services, Public Administration, and education sectors, with growth outnumbering the decline in Retail Trade, Food & Beverage Services, and Accommodation sectors that came with the end of the holidays.
The decrease in non-resident employment mostly occurred in Construction, where employment declined for the first time since the fourth quarter of 2021.
Smaller declines were also seen in the Manufacturing and Information & Communications sectors.
Importantly, retrenchments have fallen for the second quarter in a row. In the fourth quarter of 2023, there were 3,460 retrenchments, while in Q1 2024, there were 3,000.
The main reason for retrenchments for the quarter has been business reorganization or restructuring “as businesses press on with transformation efforts.”
Additionally, unemployment rates remained within the pre-pandemic range. The overall unemployment rate is 2.1 per cent, edging up slightly in March.
MOM said that this increase was not unexpected due to higher unemployment in the last two quarters of 2023.
“However, we do not expect sustained increases in unemployment rates, given continued labour market tightness,” the ministry added.
MOM will release The Labour Market Report First Quarter 2024 in mid-June and will include the breakdown of resident and non-resident employment3, sectoral breakdowns, number of job vacancies, labour turnover, and re-entry rates among retrenched residents. /TISG
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