Labour Market Advance Release - Second Quarter 2024
Overview
1. Advance estimates showed that the labour market continued to expand in 2Q 2024. Total employment (excluding Migrant Domestic Workers) grew, while unemployment rates remained low and the number of retrenchments held steady. We expect labour market momentum to be sustained in the coming quarters in tandem with Singapore’s forecasted economic growth.
Main Findings1
Total employment growth in 2Q 2024 was higher than in 1Q 2024
2. Total employment (excluding Migrant Domestic Workers) grew by 11,300 in 2Q 2024, higher than the growth of 4,700 in 1Q 2024. Resident employment continued to rise in growth sectors such as Financial Services, Health & Social Services, Information & Communications and Professional Services, indicating positive employment prospects for resident workers.
3. However, overall resident employment saw a slight decline in 2Q 2024 due to a seasonal contraction in Retail Trade, as employers temporarily hire more workers in the fourth quarter of each year in preparation for year-end festivities.
4. After declining in the previous quarter, non-resident employment increased and accounted for all the employment growth in 2Q 2024. The increase in non-resident employment in 2Q 2024 was attributed to Work Permit (WP) Holders working in non-PMET roles in Construction and Manufacturing. These are jobs which residents do not typically take on. While employment among both EP and S Pass holders declined in 2Q 2024, work-pass applications for higher-skilled non-residents have risen.
5. Overall, for the first half of 2024, employment grew for both residents and non-residents.
Unemployment situation improved
6. Unemployment rates declined in June 2024 compared to May 2024 (overall: from 2.1% to 2.0%; residents: 2.9% to 2.7%; and citizens: 3.0% to 2.8%).
Number of retrenchments held steady
7. The number of retrenchments held steady in 2Q 2024 (3,100), compared to 1Q 2024 (3,030). Retrenchment levels were broadly stable in most sectors, with business reorganisation/ restructuring remaining the top reason for retrenchments in 2Q 2024.
Conclusion
8. The rebound in non-resident employment in 2Q 2024 from 1Q 2024 suggested continued demand for labour in the economy. While resident employment contracted slightly in 2Q 2024, this was not unexpected as resident employment typically dips or posts smaller increases in the second quarter.
9. MOM’s forward-looking polls on hiring and wage expectations for 3Q 2024 were unchanged from the previous quarter.2 As a result, we expect labour market momentum to be sustained in the coming quarters, with employment and wages continuing to grow in tandem with an expected gradual pick-up in Singapore’s economy.3 However, with slowing resident workforce growth and low resident unemployment rates, continued growth in resident employment is likely to become more muted.
10. The Government calls on employers and workers to make full use of available programmes to remain competitive. Workers should continue to upskill and be open to new opportunities. Employers should press on with business transformation and equip their workers for expanded or redesigned job roles.
a. The Government will empower workers to strengthen their career health to seize new opportunities. Workers can make use of the CareersFinder feature on Workforce Singapore's (WSG’s) MyCareersFuture job portal, which harnesses data and artificial intelligence to explore career options that make the best use of their skills and experience, and pathways to reach their career goals. This will better equip workers to make informed training and career decisions.
b. WSG offers several initiatives that can help workers reskill for new job roles, such as the Career Conversion Programmes (CCPs) which support mid-career workers to undergo industry-recognised training with up to 90% salary support. Since 1 April 2024, the salary support caps for CCPs have been increased to $7,500 for mature or long-term unemployed workers and $5,000 for other workers. In addition, the eligibility criteria have been expanded beyond employees in at-risk roles to cover all employees who are being reskilled to take on growth jobs.
c. WSG’s Mid-Career Pathways Programme provides attachment opportunities to mature workers, allowing them to widen their professional networks and gain industry-relevant skills and experience while receiving a training allowance of up to $3,800 per month.
d. Jobseekers who require additional assistance can tap on career matching services offered by WSG and NTUC’s Employment and Employability Institute.
e. Employers can refer to the Jobs Transformation Maps (JTMs) to understand how their businesses and job demands may change in response to sectoral trends. A total of 17 JTMs are available on WSG’s website, and three more will be progressively completed in new growth areas such as Generative AI. The JTMs identify the key technologies that are impacting individual job roles and employers could use the JTMs to pre-emptively redesign jobs and reskill their workers for jobs of the future.
f. Employers are also encouraged to tap on the Support for Job Redesign under Productivity Solutions Grant, to make their jobs more productive and attractive to jobseekers.
11. The Labour Market Report Second Quarter 2024, due for release in mid-September 2024, will provide a comprehensive assessment and more details of the labour market situation in 2Q 2024. This will include the breakdown of resident and non-resident employment4, sectoral breakdowns, number of job vacancies, labour turnover, and re-entry rates among retrenched residents. For more information on the trends for total employment change, unemployment rates, and retrenchments, please refer to the Annex below.
For More Information
12. The report is available online on the Ministry of Manpower’s Research and Statistics Department website at stats.mom.gov.sg/.
13. For data requests and queries pertaining to the report, please reach out to the Ministry of Manpower’s Research and Statistics Department at mom_rsd@mom.gov.sg.