Total employment growth 'moderate amidst weaker economic conditions'
The number of retrenchments in Singapore surged to 14,320 in 2023, mainly due to business reorganisation or restructuring that took place in the past year, according to the latest Labour Market Advance Release.
The figure is more than double the record-low 6,440 recorded in 2022, with the increase driven by notable increases in retrenchments include Wholesale Trade, IT Services, and Electronics Manufacturing.
The surge in retrenchments came despite the slight slowdown in the last quarter of 2023, according to the report.
There were 3,200 retrenchments carried out in the fourth quarter of 2023, lower than the 4,110 registered a month prior.
"While retrenchments rose in Electronics Manufacturing, the number of retrenchments in other sectors remained broadly stable or declined," the Ministry of Manpower said in a media release.
The report also pointed out that majority of retrenched workers in Singapore were able to find a new job within six months after losing their jobs, and often in a different sector.
Labour market status
Meanwhile, the latest Labour Market Advance Release revealed that Singapore's labour market continued to expand in the fourth quarter.
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Total employment expanded by 8,400 in the fourth quarter, while unemployment rate remained at two per cent in December 2023.
For the whole 2023, total employment growth was "moderate amidst weaker economic conditions," while average unemployment rates remained stable, according to the report.
Business expectations going up
MOM said business expectations are improving based on the growing number of employers planning to hire and increase wages in 2024.
According to the report, the proportion of firms that had intentions of hiring in the next three months went up to 47.7%. The proportion of firms planning to raise wages also increased to 32.6%.
"Nevertheless, as downside risks in the global economy remain, business reorganisation or restructuring will continue and may lead to further retrenchments," the report said.
Lazada Singapore is among the firms that already welcomed the year with retrenchments, which ended with the business apologising to the Food Drinks and Allied Workers Union after it failed to consult the union over its move.
Employers who need to retrench their staff should familiarise themselves with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment, according to the Singapore National Employers Federation (SNEF).
"It included a checklist to assist and guide employers in managing their excess manpower, preserving jobs, and conducting retrenchment exercises responsibly," the SNEF said in a previous statement.