SINGAPORE’S total employment increased by 24,100 in the third quarter, more than double the growth in the previous quarter, the Ministry of Manpower’s (MOM) labour market advance release showed on Tuesday (Oct 29).
This comes as both resident and non-resident employment rose at a faster pace in Q3, with the majority of non-resident employment increase coming from work permit holders in sectors such as construction and manufacturing, as well as administrative and support services. Total employment in Q2 grew by 11,300.
UOB associate economist Jester Koh said the slight pickup in manufacturing employment is consistent with the ongoing recovery in the sector, which recorded a strong 11 per cent year-on-year expansion in Q3.
Resident employment increased in sectors such as information and communications, professional services as well as health and social services.
Meanwhile, resident employment declined in food and beverage services as well as retail trade – sectors where non-resident employment grew.
“We anticipate resident employment in these sectors to pick up in the final quarter of the year, as businesses typically increase hiring in preparation for the festive season,” said MOM.
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The number of layoffs also declined to 2,900 in Q3, compared with 3,270 in the previous quarter.
MOM said retrenchments decreased or remained stable across different sectors, with business reorganisation and restructuring remaining the top reason.
However, Patrick Tay, assistant secretary-general of the National Trades Union Congress, warned in a Facebook post that retrenchments for the full year are still expected to cross 10,000.
This, he said, was similar to pre-pandemic years, when both cyclical and structural challenges weighed on companies and business, with layoffs hovering between 10,000 and 15,000 per year.
The overall unemployment rate dipped to 1.8 per cent in September, from 1.9 per cent in August. The rates for residents and citizens remained unchanged at 2.6 per cent and 2.7 per cent, respectively.
On the whole, the numbers indicate an expanding labour market, said MOM.
RHB acting group chief economist Barnabas Gan said Singapore’s improving economic prognosis into 2025 remains a key driver for a healthy labour market in the medium term.
The city-state posted better-than-expected manufacturing output growth in the last two months, which, economists believe, is likely to result in an upward revision to Singapore’s Q3 gross domestic product.
However, MOM’s forward-looking polls in September also indicated a decline in hiring and wage expectations, reflecting ongoing uncertainty in export-oriented sectors.
It added that firms are likely to prioritise maintaining current operations, rather than expanding or increasing wages, amid heightened geopolitical tensions and trade conflicts.
Yet, Gan said he maintains an optimistic view despite the poll results, as he expects hiring demand for the services industry to stay resilient on the back of the year-end festive season and the positive outlook into 2025.
“Lower hiring demand may be due to short-term noise surrounding global trade concerns, while wages are structurally sticky, but still likely to trend higher on the back of Singapore’s relatively tighter labour market,” he said.
The final labour market report for Q3 is due for release in mid-December.
