Labour Market in 3Q 2024

Introduction

1. The labour market continued to expand in 3Q 2024,[1] in line with sustained economic growth.[2] Total employment growth nearly doubled in 3Q 2024 (22,300) as compared to the previous quarter (11,300) with increases in both resident (4,000) and non-resident employment (18,200). Unemployment rates (overall: 1.9%; resident: 2.6%; citizen: 2.7%) and retrenchments (3,050) remained low.

2. Resident employment rose (4,000) after seasonal declines in domestic-oriented sectors in 2Q 2024 (-600). Resident employment continued to grow in outward-oriented sectors such as Information & Communications, Professional Services and Financial Services, due in part to employment shifts from domestic-oriented sectors such as Retail Trade and Food & Beverage Services. Non-resident employment also rose, driven mainly by the hiring of Work Permit holders in Construction and Manufacturing.

3. Labour demand declined but remained high. In September 2024, the number of job vacancies fell to 63,400, down from 81,200 in June 2024. The decline was driven by Construction, Transportation & Storage, and Manufacturing, where more lower-skilled jobs have been filled by Work Permit holders.[3] Despite this decline, there remained more job openings than unemployed persons. In September 2024, there were 1.39 job vacancies for every unemployed person. The start of year-end festivities is expected to give a further boost to labour demand.

Main Findings        

Total employment continued to grow

4. Resident employment grew strongly in 3Q 2024 in higher-skilled and higher-paying sectors - a continuation of the trend seen last quarter - such as Information & Communications, Professional Services and Financial Services.

5. Non-resident employment growth came mostly from Work Permit holders and mainly in Construction and Manufacturing. There are generally not enough resident workers in these sectors which comprise mostly blue-collar jobs (e.g. construction labourers). Employment among higher-skilled pass types (i.e. S Pass and EP holders) grew modestly in 3Q 2024.

6. Employment among higher-skilled pass types grew modestly in 3Q 2024 after declines in previous quarters, as employers adjust their workforces post-pandemic and adapt to policy changes such as COMPASS and higher qualifying salaries to improve the quality of the foreign workforce.

7. Employment numbers in EP holders remained steady in 3Q 2024 after declines in 1H 2024. The number of EP holders is expected to rise gradually in the next few months, following an uptick in EP applications after the initial dip when COMPASS was implemented. S Pass holders saw growth in 3Q 2024, after declining for the past two quarters. Financial Services and Health & Social Services saw additions in employment for S Pass holders, for jobs with sought-after skills like nursing.

Unemployment rates declined and resident long-term unemployment rate held steady and remained low

8. Unemployment rates continued to decline in September 2024 (overall: 1.9%; resident: 2.6%; citizen: 2.7%) compared to June 2024 (overall: 2.0%; resident: 2.7%; citizen: 2.8%). The resident long-term unemployment rate at 0.8% in September 2024 was unchanged from March and June 2024.

The number of retrenchments declined in 3Q 2024

9. The number of retrenchments declined in 3Q 2024 (3,050 or 1.4 retrenched per 1,000 employees) from the previous quarter (3,270 or 1.4 retrenched per 1,000 employees). Similar to the trends observed for retrenchments, the number of workers placed on short work-week or temporary layoffs also stayed low (480), reflecting the overall positive business sentiments and confidence.

The resident re-entry rate within 6 months post-retrenchment increased in 3Q 2024

10. The rate of re-entry into employment of retrenched residents within 6 months post-retrenchment increased to 60.4% in 3Q 2024 from a low of 55.0% in 2Q 2024.

The number of job vacancies declined in September 2024, trending towards the pre-pandemic levels

11. The number of job vacancies declined in September 2024 (63,400) compared to June 2024 (81,200), extending a gradual downtrend from the peak in March 2022 (124,400). Despite this drop, there were still more job openings than unemployed persons. In September 2024, there were 1.39 job vacancies for every unemployed person.

12. Post-pandemic, employers might have filled up vacancies more adequately. More workers were staying on in their current jobs, observed by the gradual decline in resignation rate from 1.7% in 2022 and 1.8% in 2019 (pre-pandemic) to 1.3% in 3Q 2024. Hirings were more for new posts, with the recruitment rate (3Q 2024: 1.9%) higher than the resignation rate (3Q 2024: 1.3%).

Assessment of the labour market

13. In November, MTI projected that Singapore’s GDP growth would come in at around 3.5% in 2024. Growth for the rest of the year will be supported by resilient external demand and the ongoing global electronics recovery. For 2025, MTI expects the Singapore economy to expand by 1.0% to 3.0%, with the growth outlook of the manufacturing and outward-oriented services sectors remaining positive. Nonetheless, global economic uncertainties have increased, with the risks tilted to the downside.

14. Against this backdrop and overall positive business sentiments and confidence, MOM expects labour market expansion to be sustained, with wages and employment continuing to grow in tandem with economic growth. The labour market is expected to stay tight with low unemployment, but tightness could ease gradually as more job vacancies are filled, and the number of job vacancies as well as the ratio of job vacancy to unemployed persons continue to adjust towards pre-pandemic levels. Overall, we expect labour market performance in 2024 to be stronger compared to 2023.

15. In the longer-term, we should expect resident employment growth to moderate given Singapore’s high labour force participation rate and slowing resident workforce growth. Hence, complementing our local workforce with skilled foreign workers is essential to sustain Singapore economic competitiveness and growth, so as to create more opportunities for locals. Over the last decade, the number of resident PMET employment grew by 382,000, while the number of EP and S Pass holders grew by 38,000. This was also the case in sectors that hire the most EP holders – Financial and Insurance Services, Professional Services, and Information & Communications. Over the past decade, EP and S Pass holders in these sub-sectors increased by 17,000, while local PMET employment increased by 172,000.

16. The Government will continue to invest heavily in Singaporeans to enable them to compete strongly amidst continuous economic transformation and prevailing global uncertainties. Amid business transformation, employers should press on to equip their workers for expanded or redesigned job roles:

1. The Government calls on employers to make full use of available resources and programmes to remain competitive. Workforce Singapore (WSG) has worked with sector agencies to launch 17 Job Transformation Maps (JTMs) which provide actionable insights on the impact of technology and automation on businesses and jobs. Employers can tap on the Support for Job Redesign under the Productivity Solutions Grant (PSG-JR) to redesign jobs in anticipation of change and make them more productive and attractive to jobseekers.

    

2. The Government will empower Singaporeans to take charge of their career health and navigate changes in the economy and jobs. 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 use of their skills and experience, and pathways to reach their career goals. Singaporeans can also tap on career coaching and guidance services provided by WSG and NTUC’s Employment and Employability Institute.

    

3. As businesses restructure and jobs requirements shift, we will help jobseekers to reskill for new jobs. The Career Conversion Programmes (CCPs), which support mid-career workers to undergo industry-recognised training, have been enhanced to provide greater salary support. The newly-launched Overseas Markets Immersion Programme will provide Singaporeans with more opportunities to go overseas to acquire valuable exposure and experience abroad.