Singapore Labour Market Continued To Expand In 4Q 2023 - Advance Estimates

SINGAPORE, Jan 31 (Bernama) -- The Singapore labour market continued to expand in the fourth quarter (4Q) 2023, according to advance estimates released by the republic’s Ministry of Manpower (MOM).

In a statement today, the ministry said total employment (excluding Migrant Domestic Workers) continued to grow for the ninth consecutive quarter, expanding by 8,400 in 4Q 2023.

“However, this growth moderated significantly in 4Q 2023 for both residents and non-residents compared to previous quarters.

“This moderation was not unexpected as weaker hiring expectations and declining job vacancies from previous quarters indicated cooling labour demand,” it said.

Resident employment growth was largely in Health & Social Services and Public Administration & Education, as well as in Retail Trade and Food & Beverage Services due to seasonal hiring in 4Q 2023.

After the sharp, post-pandemic rebound in 2022, total employment growth for the full year of 2023 was moderate amidst weaker economic conditions.

“The more muted pace of growth was seen for both residents and non-residents,” it said.

Unemployment rates were unchanged in December 2023 (overall: 2.0 per cent; resident: 2.8 per cent; and citizen: 2.9 per cent).

For the full year of 2023, the average unemployment rates remained stable and low amidst a still-tight labour market (overall: 2.1 per cent in 2022 compared to 1.9 per cent in 2023; resident: 2.9 per cent as against 2.7 per cent; citizen: 3.0 per cent versus 2.9 per cent).

Meanwhile, the number of retrenchments rose in 2023 after a record-low in 2022, largely a result of reorganisation or restructuring within firms.

Retrenchments fell to 3,200 in 4Q 2023 from 4,110 in 3Q 2023, after a surge in Wholesale Trade retrenchments in the previous quarter.

While retrenchments rose in Electronics Manufacturing, the number of retrenchments in other sectors remained broadly stable or declined.

For the whole of 2023, the number of retrenchments rose from a record-low of 6,440 in 2022 to 14,320 in 2023.

Business reorganisation or restructuring remained the top reason for retrenchments in 2023, due in part to the impact of global economic headwinds on outward-oriented sectors such as Wholesale Trade, IT Services and Electronics Manufacturing.

MOM said its surveys indicate an improvement in business expectations alongside the Ministry of Trade and Industry’s expectation of improved economic growth prospects for 2024.

The proportion of firms which indicated an intention to hire in the next three months rose from 42.8 per cent in the previous quarter to 47.7 per cent in 4Q 2023.

Likewise, the proportion of firms with an intention to raise wages rose from 18.0 per cent to 32.6 per cent.

Nevertheless, as downside risks in the global economy remain, business reorganisation or restructuring will continue and may lead to further retrenchments.

The Labour Market Report Fourth Quarter 2023, due for release in mid-March 2024, will provide a comprehensive assessment and more details of the labour market situation in 4Q 2023 and the full year of 2023, said the ministry.
-- BERNAMA