Recruiters told to 'up their game' amid tight competition
Singapore's unemployment rate declined to two per cent in June 2024, according to data from the Ministry of Manpower (MOM).
"The unemployment situation has improved. Unemployment rates declined in June 2024 compared to May 2024," MOM's Labour Market Advance Release read.
Resident unemployment declined from 2.9% to 2.7%, while citizen unemployment declined from three per cent to 2.8% in June.
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Total employment improves
Meanwhile, total employment also grew by 11,300 in the second quarter of 2024, higher than the first quarter's 4,700.
MOM attributed the total employment increase to non-residents, with growth stemming from lower-skilled Work Permit Holders working in non-PMET roles in Construction and Manufacturing.
On the other hand, resident employment saw a decline in the second quarter due to the seasonal decline in Retail Trade, following the widespread hirings recorded in the fourth quarter of each year ahead of year-end festivities.
"A rebound in non-resident employment from the previous quarter suggested continued demand for labour in the economy," MOM's release said. "While resident employment contracted slightly, this was not unexpected as resident employment typically dips or posts smaller increases in the second quarter."
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Retrenchments hold steady
Retrenchments in the second quarter remained "broadly stable" in most sectors, according to MOM.
There were 3,100 retrenchments in the second quarter, slightly higher than 3,030 in the first quarter, with business reorganisation/restructuring remaining the top reason for them.
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MOM said it expects labour market momentum to be sustained, with wages and employment continuing to grow in tandem.
"However, with slowing resident workforce growth and low resident unemployment, continued growth in resident employment is likely to become more muted," MOM said.
Tough spot for recruiters
Callam Pickering, Senior Economist at Indeed APAC, said recruiters were already in a tough spot before MOM's data was released.
"To stay competitive, businesses need to up their game with better compensation and proactive recruitment strategies. The demand is high, and the old ways just aren't cutting it anymore," Pickering said in a statement.
"Hiring managers should focus on highlighting unique benefits, fostering a positive work culture, and leveraging targeted resume searches to find the right fit."