Reflect before closing year 2024 and Looking forward 2025
Last quarter closing the year 2024 Hiring Slowdown Amidst Economic Uncertainty
Singapore's labor market is showing signs of cooling down, with fewer companies planning to hire or raise wages in last quarter 2024 and upcoming 1st quarter 2025.
According to advance estimates released by the Manpower Ministry (MOM) , the percentage of companies intending to hire in Q4 2024 dropped to 43.2% from 49.4% compare in the previous quarter. Similarly, wage increase plans declined to 15.6% from 28.6%.
Research from MOM attributed this shift to global economic headwinds, including geopolitical tensions and trade conflicts, which are prompting businesses to prioritize operational stability over expansion and wage increases.
Tight Labor Market Persists
Despite the hiring slowdown, Singapore expects employment to continue growing Iin some sectors and the labor market will remain tight in the next quarter 2025. This is partly attributed to anticipated beginning year hiring for the festive season
Employment Growth Across Sectors
Resident employment saw growth in key sectors like information and communications, professional services, and health and social services, indicating a steady supply of quality jobs for Singaporean workers.
Non-resident employment also increased, primarily driven by work permit holders in construction and manufacturing, sectors where local candidates may be limited.
Higher-skilled pass holders experienced stable employment levels.
Sectoral Shifts
While resident employment declined in sectors like food and beverage and retail trade, where non-resident employment grew, Singapore expects resident hiring to rebound in Q1 due to the festive season.
Unemployment Remains Low
The overall unemployment rate dipped slightly to 1.8%, with resident and citizen unemployment rates remaining stable at 2.6% and 2.7%, respectively. These figures are within the range for non-recessionary periods.
Retrenchments Decline
The number of retrenchments decreased to 2,900 in the last quarter, down from 3,270 in the previous quarter. Business reorganization and restructuring remain the primary reasons for retrenchments.
Outlook
Singapore described the advance estimates as "promising signs" for both workers and businesses, with a positive outlook for Singapore's labor market in year 2025
2nd Quarter employment will likely improve supply of quality job opportunities in growth sectors such as IT, Aerospace, Services, Legal, Financial – investment banking, professional services cater for Family offices, , healthcare, Infrastructure and Real Estate