2 weeks Ago By gp
ANN/THE STRAITS TIMES – Singapore’s employment levels saw a substantial increase in the third quarter of 2024, with total employment rising by 24,100 between July and September, more than double the 11,300 growth recorded in the previous quarter. The boost, detailed in preliminary labour market data from the Ministry of Manpower (MOM) yesterday, reflects rising employment among both residents and non-residents. Despite a dip in hiring and wage expectations for Q4, especially in export-driven sectors, MOM projects continued employment growth, supported by an upward revision to the gross domestic product forecast and the usual year-end hiring surge for the festive period.
Retrenchments also dropped significantly, with a third-quarter reduction of 11.3 per cent to 2,900 from 3,270 in Q2. MOM noted stable or declining retrenchments across sectors, with corporate restructuring cited as the main driver for layoffs.
Assistant secretary-general of the National Trades Union Congress Patrick Tay highlighted that retrenchment levels remain steady, with the manufacturing sector performing better than in recent years. However, he expected total retrenchments to surpass 10,000 for 2024, aligning with pre-pandemic averages. Meanwhile, unemployment rates held low in September, with the rate for residents unchanged at 2.
7 per cent for Singaporeans and 2.6 per cent for permanent residents. The overall unemployment rate saw a slight dip to 1.
8 per cent in September from 1.9 per cent in July and August, consistent with levels seen in non-recessionary years from 2015 to 2019, MOM reported. Acting group chief economist at RHB Bank Barnabas Gan said the 1.
8 per cent jobless rate is “among 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,” the ministry 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..
