Singapore’s nominal wage growth may slow further in 2024 as labour market cools

SINGAPORE’S nominal wage growth may slow further in 2024, as the labour market cools to the pre-pandemic norm amid economic uncertainty.

Yet unlike 2023, when high inflation caused wages to shrink in real terms, there is a chance of real wage growth this year as inflation slows.

Labour market tightness peaked in 2022 as Singapore emerged from the pandemic. Manpower demand was red-hot as Covid curbs eased and activity picked up – but supply was constrained, as the non-resident workforce remained below pre-pandemic levels.