Retrenchments doubled last year; here’s how to prepare for 2024 layoffs in Singapore

SINGAPORE: A recent report from the Ministry of Manpower (MOM) says that the number of layoffs more than doubled in 2023 and are now similar to pre-pandemic levels.

The Labour Market Report for the fourth quarter of 2023 showed that despite showing resilience throughout the year, the incidence of retrenchment in 2023 (6.7 per 1,000 employees) grew to more than double the low figure observed in 2022 (3.1 per 1,000 employees).

“The number of retrenchments rose in 2023 after a record-low in 2022, largely a result of re-organisation or restructuring within firms,” MOM said.

A March 24 dollarsandsense.sg report listed three reasons for Singaporeans to be ready for retrenchment at any time.

Firstly, businesses see layoffs as a “path to sustainability.”

On a local level, Lazada made headlines just as 2024 rolled around with a series of “sweeping” layoffs, while tech giants such as Amazon, Pixar, Google, Microsoft, and TikTok have all laid off staff worldwide.

Secondly, as mentioned earlier, layoffs in Singapore have gone up. However, job vacancies decreased throughout 2023, except in December.

Lastly, DollarsAndSense cited the following global trends that have contributed to retrenchments: higher interest rates, the rise of AI, and the slowdown of e-commerce.

“An environment of higher interest rates will inevitably affect global growth – including in Singapore.

With a signal that interest rates may stay elevated for longer in 2024, investment sentiments may dampen on the back of higher borrowing costs,” DollarsAndSense wrote.

What to do to be ready:

1. Check your company’s health, which can be as simple as asking whether financial goals are met during meetings. This will eliminate surprises and provide you with an early warning device if things are beginning to go wrong.
2. Ensure you have enough emergency savings to last at least three months. This is one of the first things that anyone employed should do. Remember to account for inflation.
3. Keep tabs on the jobs in your field, and ensure your résumé and cover letter are updated regularly. You never know when you’ll need them.
4. Network, network and network. Go to events; you never know who you might meet. Say goodbye to your inner introvert, for now at least, and put yourself out there. As the saying goes, “it’s not what you know, it’s whom you know.” /TISG

Read also: Number of layoffs more than doubled in 2023, now similar to pre-pandemic levels —Singapore News