Singapore’s Q3 employment growth more than doubles, retrenchments fall from previous quarter
Total employment in the July to September period grew by 24,100, more than doubling from the growth of 11,300 in the second quarter. PHOTO: ST FILE
SINGAPORE – The number of Singapore residents with jobs picked up in the third quarter of 2024, as employment growth surged and retrenchments fell.
Singapore’s total employment in the July to September period grew by 24,100, more than doubling from the growth of 11,300 in the second quarter, according to preliminary labour market data released on Oct 29.
The Ministry of Manpower (MOM) said the pickup in growth came from both residents – Singaporeans and permanent residents – as well as non-residents.
Said the ministry: “While there was a decline in hiring and wage expectations among companies for the fourth quarter of 2024 – reflecting ongoing uncertainty in export-oriented sectors – we expect employment to continue to expand in the next quarter, and the labour market to remain tight.”
“This outlook is supported by an upward revision to the GDP (gross domestic product) growth forecast and anticipated year-end hiring for the festive period.”
Meanwhile, the number of retrenchments in the third quarter fell 11.3 per cent to 2,900 from 3,270 in the second quarter.
MOM noted these retrenchment figures decreased or remained stable across sectors. Corporate restructuring remained the top reason for retrenchments.
NTUC assistant secretary-general Patrick Tay said in a Facebook post on Oct 29 that retrenchments are holding steady as the manufacturing sector is performing better compared with the past two years.
He noted that retrenchments are still expected to cross 10,000 for whole of 2024.
This would be similar to pre-pandemic years when both cyclical and structural challenges weighed on companies and businesses and layoffs hovered between 10,000 and 15,000 a year, Mr Gan said.
MOM said unemployment rates across the board remained low in September. The rate for Singaporeans and PRs remained unchanged at 2.7 per cent and 2.6 per cent respectively for July, August and September.
The overall rate declined from 1.9 per cent – for both July and August – to 1.8 per cent in September. The figures fall within the range reflected in the non-recessionary years of 2015 to 2019, MOM said.
Mr Barnabas Gan, acting group chief economist at RHB Bank, said the 1.8 per cent jobless rate is “amongst the lowest in history”. The previous low was 1.7 per cent in the third quarter of 2007.
He said labour demand should continue to rise in the fourth quarter of 2024 on the back of Singapore’s improving economic prognosis into 2025. The consumer and business confidence will auger well for higher wages and disposable income in 2025, he added.
MOM’s preliminary data showed the pickup in employment for Singaporeans and PRs was driven by a steady supply of quality jobs and favourable employment prospects. Growth sectors include information and communications, professional services, and health and social services.
“While slight resident employment declines were observed in food and beverage services and retail trade, 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,” MOM said.
For non-resident employment, growth came from work permit holders working in non-PMET (professional, managerial, executive and technical) roles such as those in construction, manufacturing, and administrative and support services.
“There are generally not enough resident workers for such roles, and businesses need to bring in work permit holders to meet the manpower shortage,” said MOM, adding that employment among higher-skilled pass types was stable over the same period.
UOB associate economist Jester Koh said the third-quarter’s slight pickup in manufacturing employment was consistent with the ongoing recovery in Singapore’s manufacturing sector.
But noting the possibility of a Trump win in the US presidential election, Mr Koh said: “Should Trump’s broad-sweep tariffs on imports into the US indeed materialise, they could adversely impact Singapore’s trade-related and manufacturing sectors.”
This would weigh on firms’ hiring decisions in these sectors, he said.
A separate analysis by job portal Foundit showed that jobs in marketing and communications witnessed the highest demand in September.
“Marketing roles are becoming increasingly important as companies focus on data-driven strategies and personalised customer experiences to boost brand engagement and drive growth,” said Mr Sekhar Garisa, Foundit’s chief executive officer.
Over the same period, supply chain roles also showed strong growth, followed by finance and accounts roles, he said.
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