Optimism among employers signals stable unemployment situation
Nearly half of employers in Singapore are expecting to hire more employees in the first quarter of 2025, according to the latest data from the Ministry of Manpower (MOM).
MOM's Labour Market Advance Release for December 2024 revealed that 46% of employers are planning to hire more workers in the next three months.
This is higher than the 43.2% recorded in the September quarter, and indicates a near-term positive sentiment among businesses despite global uncertainties and market volatility.
Source: Ministry of Manpower
"This positive shift in hiring sentiment, along with a tight labour market and the projected expansion of the Singapore economy in 2025, suggests a low risk of sharp retrenchment increases, and a stable unemployment situation," MOM said in the report.
MOM's findings are close to the data unveiled by the ManpowerGroup Employment Outlook Survey, which also revealed that 45% of employers are anticipating an increase in hiring, while only 20% are expecting a reduction to staffing levels.
Meanwhile, the report also found that 31.6% of employers are planning to hike wages in the first three months of 2025, much higher than the 15.6% that was previously recorded.
MOM said the data also indicates signs of optimism among employers.
Source: Ministry of Manpower
Aon previously noted that the budgeted salary increase in Singapore for 2025 is at 4.4%, slightly higher than the actual salary increase of 4.2% in the year prior.
The optimism among organisations comes as Singapore's labour market continued to expand in the fourth quarter of 2024, according to MOM's data.
Total employment growth in 2024 is expected to be 45,000, slightly lower than the 78,000-increase registered in 2023.
"Resident employment growth in 2024 is expected to be higher than in 2023, when resident employment declined," the report read. "In contrast, non-resident employment growth in 2024 is expected to slow considerably from 2023."
Unemployment also remained stable and low throughout 2024, hitting an average two per cent, a slight uptick from the 1.9% recorded in 2023.
The number of retrenched employees also reached 12,930 throughout 2024, lower than the 14,590 recorded in 2023.
The incidence of retrenchment also dropped to 5.8 retrenched per 1,000 employees in 2024, compared to the 6.7 in 2023.
"Throughout 2024, business reorganisation / restructuring remained the primary reason for retrenchments, rather than sectoral downturns or business closures," the report read.
