Labour Market Shows Resilience with Low Unemployment and Steady Growth in Key Sectors
SINGAPORE: Despite a challenging economic environment, employment in Singapore has increased for the eighth straight quarter, according to preliminary data released by the Ministry of Manpower (MOM) on Thursday (Oct 26). Excluding migrant domestic workers, the number of employed residents and non-residents has continued to grow.
MOM noted that the unemployment rate remains low, even with a rise in retrenchments. “This indicates that most workers who were retrenched have been able to secure new employment relatively quickly,” the ministry stated. In the third quarter of 2023, employment grew by 24,000—comparable to the increase in the second quarter of the year, excluding migrant domestic workers.
The most significant growth in resident employment occurred in high-paying sectors such as financial and professional services, as well as health and social services. For non-residents, the largest employment increases were seen in construction, retail trade, food and beverage services, and administrative support services. Overall, the unemployment rate stands at 2%, with a slightly higher rate of 3% for citizens and 2.8% for residents.
However, retrenchments have risen from 3,200 in the second quarter to 4,100 in the third quarter, with the majority occurring in wholesale trade. This increase reflects the sector’s vulnerability to the global economic slowdown. Retrenchments in other sectors remained stable or declined, with business reorganization and restructuring cited as the main reasons for job cuts.
Despite this, the pace of employment growth has slowed compared to a year ago, in line with the global economic slowdown. Business sentiment weakened in September 2023, with the percentage of firms intending to hire over the next three months dropping from 58.2% to 42.8%. Similarly, the proportion of firms planning to raise wages fell from 28.0% to 18.0%. While unemployment remains low due to ongoing labour market tightness, the rate is expected to rise gradually.
A more comprehensive analysis of the labour market for the third quarter will be available in the upcoming Labour Market Report, due in mid-December. This report will include a detailed breakdown of resident and non-resident employment, sectoral trends, job vacancies, labour turnover, and re-entry rates for retrenched residents.
