Employers also less likely to hire, raise wages in next three months
Retrenchments across Singapore went up in the third quarter of the year, according to its latest labour market figures, amid slowing employment growth.
The Ministry of Manpower's (MOM) Labour Market Advance Release showed that there were 4,100 retrenchments in the third quarter, up from the 3,200 the quarter prior.
Majority of the increase stems from the Wholesale Trade sector, according to MOM, reflecting the weaker external outlook the sector faced.
"The number of retrenchments in other remaining sectors remained broadly stable or had declined," the release said. "Business reorganisation/restructuring remained the top reason for retrenchments in 3Q 2023."
Despite growing retrenchments, Singapore's unemployment has been "largely stable and remained low" at two per cent.
Resident unemployment was at 2.8%, while citizen employment was at three per cent, according to the report.
"This suggests that most retrenched workers have been able to find new employment quickly," MOM said.
Meanwhile, total employment expanded for the eighth consecutive quarter by 24,000 in the third quarter after growth from both residents and non-residents.
"Advance estimates showed that the labour market expanded in 3Q 2023. Total employment continued to expand though the pace of growth has slowed compared to a year ago," MOM said, attributing the situation to the global economic slowdown.
Resident employment expanded in growth sectors such as Financial Services and Professional Services, as well as Health and Social Services.
Non-resident employment expanded in sectors such as Construction, Retail Trade, Food & Beverage Services, and Administrative & Support Services.
Despite growing employment, employers across Singapore are more hesitant in hiring and raising wages in the next quarter.
"Amid the global economic slowdown, firms appear to be focused on sustaining their current operations rather than further expansion," MOM said.
The number of businesses that showed an intention to hire in the next three months fell to 42.8%, down from the 58.2% the previous quarter, according to the report.
"Similarly, the proportion of firms with an intention to raise wages dropped as well, from 28.0% to 18.0%," MOM said.
To remain competitive, MOM urged employers to make use of programmes that are available to them amid economic uncertainty.
"We encourage employers to press on with business transformation, upskill and reskill their workers, and adapt to the changing environment," MOM said.
