Singapore’s job market defies crisis — low unemployment, fewer retrenchments, and more vacancies than job seekers: MOM

SINGAPORE: The city-state’s labour market showed signs of strength and recovery in 2024, with a notable rebound in resident employment following a decline in the previous year. According to the latest Labour Market Report from the Ministry of Manpower (MOM) featured in a Singapore Business Review story, resident employment grew by 8,800, reversing a loss of 4,600 recorded in 2023. This increase marks a positive turn for the local workforce, signalling resilience in key sectors.

Resident employment rebounds as higher-skilled sectors drive job creation

The growth was predominantly seen in higher-skilled industries, particularly in the financial and insurance services sector, which saw an uptick of 5,300 jobs. Other sectors that contributed to the expansion included health and social work, which added 5,200 jobs; professional services, with 5,000 new positions; and information and communications, which saw a rise of 4,200 jobs. However, there were declines in lower-skilled industries, including food and beverage services, which recorded a decrease of 2,100 jobs, and administrative and support services, which saw a reduction of 700 positions.

Slowdown in non-resident employment growth, work permit holders fill blue-collar roles as hiring trends evolve

While resident employment picked up, non-resident employment growth slowed in 2024. Nonresident workers grew by 35,700, a significant decrease from the 83,500 recorded in 2023. The growth was largely driven by work permit holders, who filled blue-collar roles that residents were less inclined to take, contributing 39,400 of the new additions. Meanwhile, the number of employment pass (EP) and S Pass holders remained stable, reflecting an adjustment by companies to the new COMPASS framework and higher salary requirements for these passes.

Despite this slowdown, Singapore’s unemployment rate remained low, holding steady at 1.9%, with retrenchment numbers slightly down from 14,590 in 2023 to 13,020 in 2024. The rate of retrenchment also decreased, from 6.7 per 1,000 employees in 2023 to 5.9 in 2024.

With job vacancies outpacing the number of unemployed individuals, the labour market remains tight. By December 2024, job vacancies had surged to 77,500, a significant increase from 61,500 in September. Notably, 70% of these vacancies were for roles typically filled by residents, such as positions in professional services, information and communications, financial and insurance services, and health and social services.

Looking ahead, employers are optimistic about hiring. Nearly half (46.3%) of businesses indicated plans to hire more employees in the first quarter of 2025, despite global trade uncertainties. The Ministry of Manpower remains hopeful that Singapore’s labour market will continue its expansion, though it cautions that any intensification of global trade tensions could impact domestic economic growth and, by extension, the labour market’s performance.