Singapore’s labor market landscape saw a complex interplay in the third quarter of 2023. While total employment showcased growth, retrenchments and unemployment figures also experienced a hike, according to the Ministry of Manpower’s (MOM) recent reports. This juxtaposition paints a picture of a resilient yet cautious labor market in the face of economic slowdowns.
A Retrenchment Surge
There was a notable rise in retrenchments, with 4,100 individuals being laid off in the third quarter, marking an increase from the 3,200 retrenchments in the previous quarter. A significant portion of this uptick originated from the wholesale trade sector, which has been grappling with a weaker external outlook. The key driver for these layoffs was attributed to business reorganization and restructuring.
Steady Employment Growth
Paradoxically, Singapore’s employment rates, excluding migrant domestic workers, surged for the eighth consecutive quarter. This consistent growth was buoyed by a rise in both resident and non-resident employment numbers. While residents found more opportunities in sectors with higher-paying roles, such as financial and professional services, as well as health and social services, non-residents saw job growth in sectors like construction, retail trade, and food and beverage services.
A Slow Creep in Unemployment Rates
Despite these growth figures, unemployment rates have shown a slow but steady uptick. Although they remained largely stable and low in September, with 2.8% for residents and 3% for non-residents, there has been a discernible slowdown in the pace of unemployment growth. This is set against the backdrop of a broader global economic deceleration. Moreover, a diminishing proportion of firms expressed intentions to hire or raise wages in the coming months, reflecting a cautious business sentiment.
A Governmental Push for Resilience
In light of the evolving labor dynamics, the government has been proactive, urging employers and workers alike to leverage available programs to bolster competitiveness and resilience amid economic uncertainties. Emphasis has been placed on business transformation, upskilling, and reskilling, adapting to the swiftly changing market conditions.
NTUC assistant secretary-general Patrick Tay also weighed in on the labor market’s state, expressing relief at the low unemployment figures. However, he voiced concerns about the escalating retrenchment numbers, anticipating an overall layoff figure surpassing pre-COVID levels by the end of 2023.
Conclusion
Singapore’s labor market presents a nuanced story of resilience and caution. While sectors like aviation, travel and tourism, and modern services are gradually recovering from the pandemic’s effects, the broader market sentiment remains tentative. The comprehensive third-quarter labor market report, slated for a mid-December release, will shed further light on these dynamics.
Also learn about Navigating the Challenge: Unemployment in China.
