Nearly a third of employers plan to hike wages in Q1 2024: MOM

SINGAPORE: Close to one-third of employers in the region are gearing up to increase employee wages in the first quarter of this year, according to the latest Labour Market Report released by the Ministry of Manpower (MOM), reflecting a significant uptick from previous years.

The report highlights that approximately 33% of employers, surveyed in December last year, have expressed their intention to boost wages within the initial three months of 2024.

This figure marks a notable rise from the mere 18% reported in September of the preceding year.

Alongside wage increments, nearly half of the surveyed employers, approximately 48%, are also contemplating expanding their workforce during the same period.

MOM officials have attributed this positive development to a renewed sense of optimism bolstered by favorable economic forecasts.

With the Ministry of Trade and Industry predicting an upswing in economic growth prospects for the year, businesses are evidently feeling more optimistic about their capacity to invest in their workforce.

Despite these encouraging indicators, the report also cautions about the persisting global risks that could necessitate ongoing restructuring within companies, potentially leading to further layoffs.

MOm appears to remain cautiously optimistic about the overall trajectory of the local labor market, with the potential for continued growth and resilience in the face of global uncertainties.