SINGAPORE saw fewer job cuts in 2024 compared with the year prior, even as employment growth continued to slow from the post-pandemic rebound, advance figures from the Ministry of Manpower (MOM) showed on Monday (Jan 27).
Retrenchments fell in 2024 to 12,930, from the 14,590 layoffs recorded in the year prior. This is despite the number of job cuts increasing on a quarterly basis to 3,600 in the fourth quarter, from 3,050 previously.
The number of layoffs in 2024 is in line with the pre-pandemic average of about 12,000 between 2017 and 2019, noted DBS economist Chua Han Teng.
Business reorganisation or restructuring continued to be the primary reason for layoffs in 2024, said MOM, and the number of job cuts recorded remains within non-recession norms. There was also no significant increase in retrenchments across sectors.
The incidence of retrenchment also fell to 5.8 retrenched per 1,000 employees in 2024, from 6.7 retrenched per 1,000 employees in 2023.
Total employment – excluding migrant domestic workers – grew by 45,500 for the full year, slowing from the previous year, when employment growth was 78,800. This was also a further normalisation from 2022’s post-pandemic increase of 227,800.
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MOM attributed the slowdown in full-year employment growth to a decrease in non-resident employment.
On a quarterly basis, total employment grew by 8,700 in the fourth quarter, easing from third-quarter employment growth of 22,300.
Employment growth slowed for both residents and non-residents in the fourth quarter, said MOM. Resident employment continued to grow in higher-skilled sectors such as professional services, financial services and health and social services, as demand held up in these sectors.
There was also an uptick in retail trade due to year-end seasonal hiring, following declines in previous quarters, the ministry added.
Similar to previous quarters, the increase in non-resident employment in the fourth quarter was concentrated in the construction sector, driven by hiring for lower-skilled jobs held by work pass holders, said MOM. Meanwhile, non-resident employment fell in outward-oriented sectors such as information and communications, and insurance services.
The overall unemployment rate nudged up slightly to 2 per cent in 2024, from 1.9 per cent in 2023. Resident unemployment edged up to 2.8 per cent, from 2.7 per cent; while citizen unemployed held steady at 2.9 per cent.
Looking ahead, MOM said it expects the labour market to maintain its growth trajectory as the economic environment improves.
A poll by the ministry in December found that 46 per cent of the firms polled expect to hire more workers than in September, when only 43 per cent did. The proportion of companies planning to raise wages doubled to 32 per cent in December, from 16 per cent in September.
DBS’ Chua said Singapore’s employment should continue expanding this year, given expectations that the economy will grow to a medium-term potential rate of around 2 to 3 per cent.
“However, labour demand faces downside risks from potential intensification of lingering geopolitical trade tensions that could hurt highly trade-dependent economies like Singapore,” he added.
