'Notwithstanding global trade tensions, we expect the labour market to continue expanding in the near term'
Singapore's labour market expanded in the previous year with resident employment bouncing back following a decline in 2023, according to the latest data from the Ministry of Manpower.
MOM's Labour Market Report revealed that resident employment went up by 8,800 in 2024, reversing the decline of 4,600 recorded a year prior.
The employment growth was mainly observed in higher-skilled sectors, such as the Financial and Insurance Services sector, which saw a 5,300 increase. The other sectors that recorded an increase are:
Health and Social Work (5,200)
Professional Services (5,000)
Information and Communications (4,200)
On the other hand, declines were observed in lower-skilled sectors, such as the Food and Beverage Services (-2,100), as well as the Administrative and Support Services (-700).
When it comes to non-resident employment, MOM said growth was slower after only registering an additional 35,700 in 2024, down from the 83,500 in 2023.
"The increase was mostly among Work Permit holders (39,400 in 2024), who filled blue-collar jobs that residents were less likely to take," the report stated.
"The number of Employment Pass (EP) and S Pass holders held steady in 2024 following significant increases in the past two years, as companies adjust to COMPASS and the higher qualifying salary requirements for EP and S Pass holders."
Meanwhile, the unemployment rate in Singapore remained "low and stable," with the overall jobless rate at 1.9%.
Retrenchments also hit 13,020 in 2024, slightly lower than the 14,590 in the year prior. The incidence of retrenchment was also lower at 5.9 per 1,000 employees in 2024, down from the 6.7 in 2023.
According to MOM, Singapore's labour market remains tight as there were more job vacancies than the number of unemployed people.
In the fourth quarter of 2024, there were 1.64 job vacancies for every unemployed person. It comes as the number of job vacancies went up to 77,500 in December, higher than the 61,500 in September.
"About 70% of the vacancies were for jobs typically filled by residents, for example, in Professional Services, Information & Communications, Financial & Insurance Services and Health & Social Services," the report noted.
Hiring sentiments among employers also remained strong, as 46.3% of businesses indicated that they plan on hiring more employees in the first three months of the year.
"Notwithstanding global trade tensions, we expect the labour market to continue expanding in the near term," MOM said in a statement.
"However, should global trade tensions intensify leading to a deceleration in domestic economic growth, labour market performance is likely to soften as well."
