Labour Market in 4Q 2024

Overview 

1. The labour market continued to expand in 2024 on the back of strong economic performance and positive business sentiments. Total employment (resident and non-resident) grew by 44,500 in 2024.

2. Resident employment increased by 8,800, reversing the decline of 4,600 in 2023. More residents were employed in higher-skilled sectors such as Financial & Insurance Services (5,300), Health & Social Work (5,200), Professional Services (5,000) and Information & Communications (4,200). There were notable declines in resident employment in lower-skilled sectors such as Food & Beverage Services (-2,100) and Administrative & Support Services (-700). 

3. Non-resident employment growth slowed from 83,500 in 2023 to 35,700 in 2024. The increase was mostly among Work Permit holders¹ (39,400 in 2024), who filled blue-collar jobs that residents were less likely to take. 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.

4. The labour market remained tight in 4Q 2024 with more job vacancies than unemployed persons (1.64 job vacancies for every unemployed person in December 2024). The number of job vacancies rose from 61,500 in September 2024 to 77,500 in December 2024. About 70% of the vacancies were for jobs typically filled by residents. 

5. The unemployment rates and resident long-term unemployment rate remained low and stable in December 2024, reflecting continued labour market tightness. The incidence of retrenchment also remained low at 1.5 per 1,000 employees in 4Q 2024. There were fewer retrenchments in 2024 (13,020) compared to 2023 (14,590). Similarly, the number of employees placed on short work-week or temporary layoffs were lower in 2024 (2,210) compared to 2023 (3,110).

Main Findings

Total employment continued to grow

6. Total employment grew by 44,500 in 2024, compared to 78,800 in 2023, with increases in both resident and non-resident employment. Resident employment increased by 8,800, reversing the decline of 4,600 in 2023. Non-resident employment grew at a slower pace in 2024, reaching 35,700, compared to 83,500 in 2023. The increase was mostly among Work Permit holders who filled blue-collar jobs that residents were less likely to take. The number of Employment Pass (EP) and S Pass holders was broadly stable following significant increases in the past two years, as companies adjust to COMPASS and the higher qualifying salary requirements. 

7. In 4Q 2024, the labour market continued to expand (7,700), as both resident (1,400) and non-resident (6,300) employment increased, but at a slower rate than in 3Q 2024. Resident employment continued to grow strongly in Professional Services and Financial Services. The growth in non-resident employment has slowed significantly compared to 3Q 2024 and was mainly due to Work Permit holders which came mainly from Construction and Manufacturing.

Unemployment rates and resident long-term unemployment rate remained low

8. The unemployment rates remained low and stable in December 2024 (overall: 1.9%; resident: 2.8%; citizen: 2.9%). The resident long-term unemployment rate also remained at 0.8% in December 2024, similar to September 2024.

The number of retrenchments increased in 4Q 2024 but was lower in 2024 compared to 2023

9. For the full year of 2024, the number of retrenchments were lower than in 2023 (13,020 compared to 14,590). Similarly, the number of employees placed on short work-week or temporary layoffs were also lower in 2024 (2,210) compared to 2023 (3,110), reflecting the overall positive business and economic sentiments in 2024.

10. The number of retrenchments increased from 3,050 in 3Q 2024 to 3,680 in 4Q 2024. The increase was mainly in Financial & Insurance Services (from 270 to 620) as a higher proportion of firms retrenched due to high cost. Along with the increase in the number of retrenchments, the number of employees placed on short work-week or temporary layoffs increased to 660, but this remained low at pre-pandemic levels of less than 1,000.

The resident re-entry rate within 6 months post-retrenchment fell slightly in 4Q 2024

11. Among retrenched residents, the rate of re-entry into employment within 6 months post-retrenchment dropped slightly from 60.4% in 3Q 2024 to 58.1% in 4Q 2024.

The number of job vacancies rebounded in 4Q 2024

12. In December 2024, the number of job vacancies rebounded to 77,500, after a decline in September 2024 (61,500). Similarly, the job vacancy rates rose from 2.7% to 3.1% over the same period. The labour market remained tight although it has moderated over the year. The ratio of job vacancies to unemployed persons rose to 1.64 in December 2024, from 1.32 in September 2024 but this was lower than 1.76 in December 2023.

Assessment of the Labour Market 

13. The Singapore economy is projected to expand by 1.0% to 3.0% in 2025, slower than the 4.4% growth recorded in 2024 due to ongoing global trade frictions and potential disruptions to the global disinflation process.² Growth for the year is expected to be largely supported by continued expansions in the manufacturing and outward-oriented services sectors. 
 
14. Against this backdrop, MOM expects the labour market to continue to expand in 2025, at least in the first quarter of 2025. Based on MOM’s surveys, the percentage of employers expecting to increase wages and headcount in the next three months rose in December 2024 compared to September 2024.³ However, should trade tensions intensify and slow down the Singapore economy, labour market performance may soften notwithstanding labour market tightness.  

15. In the longer term, resident employment growth will moderate given Singapore’s already-high labour force participation rate and slowing resident workforce growth. It is therefore essential to continue pursuing productivity-driven growth and staying open to global talent and investments.

16. The Government will support employers to press on with business and workforce transformation. The Government will also continue to empower Singaporeans to strengthen their career health, compete strongly in the economy and work towards their career aspirations. Employers and workers can tap on an extensive suite of resources and programmes:

i. 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. 

ii. As announced at Budget 2025, the Government will be introducing the SkillsFuture Workforce Development Grant (WDG) as part of the Enterprise Workforce Transformation Package. This will bring together workforce transformation schemes administered by WSG and SkillsFuture Singapore (SSG), and simplify the application process. Schemes under the WDG include the Career Conversion Programmes (CCPs), which support mid-career workers to undergo industry-recognised training. Employers who have not done so can tap on the SkillsFuture Enterprise Credit to offset out-of-pocket costs for these schemes.

iii. 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. 

iv. The Government will continue to 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 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. For example, workers can tap on Polaris, a suite of personalised career programmes which provides career guidance for employed individuals. Workers can also tap on the base tier of SkillsFuture Credit, which comprises the $500 opening credit and the one-off $500 top-up given in 2020, to cover the expenses for eligible career guidance services endorsed by WSG.

v. The Government will also expand career development opportunities for Singaporean professionals with global ambitions. For example, WSG’s Overseas Markets Immersion Programme supports companies to send more Singaporean employees with little to no overseas experience for overseas postings to acquire valuable exposure and experience, while supporting international business growth. As announced at Budget 2025, Government agencies will double the collective capacity of overseas work programmes and leadership milestone programmes, such as MAS’s International Postings Programme and IMDA’s SG Digital Leadership Accelerator, from 400 participants a year to over 700. 

For More Information 

17. The “Labour Market Report 4Q 2024” is released by the Manpower Research and Statistics Department, Ministry of Manpower. The report and technical notes on the various indicators are available at https://stats.mom.gov.sg.