Despite a nominal increase in income for Singaporean workers in 2023, real incomes have declined due to high inflation. The Ministry of Manpower’s annual labour force report reveals that workers in the 20th percentile (P20) and the median group (P50) experienced a decrease in real income, with a 3% fall for P20 workers and a 2.3% decrease for P50 workers.
Employment Rate Trends
The resident employment rate also dipped to 66.2% in 2023 from 67.5% in 2022. However, Singapore’s employment rate still ranks fourth highest among OECD countries, indicating a resilient labor market despite economic challenges. This places Singapore ahead of nations like Switzerland, the UK, and the USA.
Improvement in Unemployment Rates
In a positive development, unemployment rates for both PMETs (Professionals, Managers, Executives, and Technicians) and non-PMETs improved in 2023. Non-PMET unemployment fell from 4.4% in 2022 to 3.6% in 2023, and PMET unemployment decreased from 2.6% to 2.4%. Additionally, the long-term unemployment rate declined for both groups, further highlighting the recovery in the job market.
Also learn about Singapore Core Inflation Hits 3.3% in October Amid Rising Costs.
