Singapore’s Manpower Research and Statistics Department, Ministry of Manpower has recently released its new report titled, “Labour Market Report 2Q 2024.” According to the new report, the Singapore labour market continued to demonstrate strong growth in the second quarter of 2024, with total employment more than doubling compared to the first quarter.
Employment rose by 11,300 in Q2, significantly higher than the 4,700 increase in Q1. Non-resident employment accounted for the majority of this growth, with 12,000 new jobs, primarily in the Construction and Manufacturing sectors, which typically rely on Work Permit holders. In contrast, resident employment experienced a slight decline of 600, due to seasonal adjustments in sectors such as Retail Trade and Administrative & Support Services.
Despite these fluctuations, Singapore’s labour market remains tight, with job vacancies continuing to exceed the number of unemployed individuals. By June 2024, the ratio of job vacancies to unemployed persons had risen to 1.67, up from 1.56 in March. Unemployment rates also improved, falling to 2.0% overall and 2.7% for residents.
Retrenchments remained low, with 3,270 workers laid off in Q2 2024, slightly higher than the 3,030 in Q1. The Financial & Insurance Services and Wholesale Trade sectors saw the highest levels of retrenchments, with most companies attributing this to business reorganisation. However, more than half of retrenched residents were able to find jobs within six months, although the re-entry rate dropped from 59.4% in Q1 to 55.0% in Q2.
Labour demand remained strong, with 81,200 job vacancies in June 2024. The Ministry of Manpower (MOM) expects employment and wage growth to continue into the second half of 2024, driven by sectors such as Financial & Insurance Services, Information & Communications, and Professional Services. Major events like the Formula One Singapore Grand Prix and year-end celebrations are expected to provide further boosts to employment figures.
What are the future plans?
Looking ahead, the MOM is focusing on maintaining the quality of foreign talent while continuing to support local workforce growth. Initiatives such as the Overseas Networks & Expertise (ONE) Pass and the COMPASS framework are designed to ensure businesses attract skilled foreign professionals while encouraging firms to reduce their reliance on lower-skilled foreign workers. The government is also investing in upskilling Singaporeans, helping them adapt to economic changes through programmes such as SkillsFuture and Career Conversion Programmes.
In the longer term, resident employment growth is expected to moderate due to Singapore’s high labour force participation rate. However, maintaining an open approach to global talent will be crucial for sustaining economic momentum.
