Singapore’s resident employment rebounds in Q3, with year-end festivities set to boost labour demand
Total employment increases by 22,300 in the quarter, nearly double the 11,300 gain in Q2
RESIDENT employment in Singapore rose by 4,000 in the third quarter of 2024, reversing from a seasonal decline in Q2, driven by strong hiring in outward-oriented sectors such as information and communications, professional services and financial services.
Non-resident employment rose by 18,200, primarily due to the hiring of work permit holders in construction and manufacturing, based on the Ministry of Manpower’s (MOM) quarterly Labour Market Report released on Monday (Dec 9).
Employment among S Pass holders also rose in Q3 after declines in the previous two quarters, with financial services and health and social services contributing to this growth.
Meanwhile, the number of Employment Pass (EP) holders remained stable following earlier declines.
MOM expects a gradual increase in EP holders in the coming months, as applications recover from the initial adjustments to the Complementarity Assessment Framework (Compass), implemented in September 2023.
DBS economist Chua Han Teng observed that Q3’s employment growth aligned with the stronger economic performance, bolstered by outward-oriented sectors.
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“We expect favourable economic growth in the remainder of 2024 and into early 2025, which will support the labour market and keep the overall unemployment rate low,” he said.
Strong growth
Overall, total employment increased by 22,300 in Q3, nearly double the 11,300 gain in Q2.
Labour demand remained robust, with MOM noting that year-end festivities are expected to boost hiring activity.
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Job vacancies, however, declined to 63,400 in September – down from 81,200 in June – as lower-skilled roles in construction, transportation and manufacturing were filled.
Despite this drop, job openings continued to outnumber unemployed persons, with 1.39 vacancies per jobseeker in September.
Post-pandemic trends have contributed to these dynamics, with employers seemingly better able to fill vacancies.
Workers have been more likely to stay in their roles, reflected in a steady decline in resignation rates from 1.8 per cent in 2019 and 1.7 per cent in 2022, to 1.3 per cent in Q3.
Hirings were more for new posts, MOM said, as the recruitment rate of 1.9 per cent in Q3 outpaced the resignation rate of 1.3 per cent.
Other key labour market indicators demonstrated positive trends.
Retrenchments fell to 3,050 in Q3 from 3,270 in Q2, while the re-entry rate of retrenched residents into employment within six months rose to 60.4 per cent from 55 per cent.
Unemployment rates also eased slightly, with the overall rate at 1.9 per cent and the resident rate at 2.6 per cent in September.
MOM expects the labour market to remain tight, supported by economic growth and strong business sentiment.
Wage and employment growth are projected to continue, supported by resilient external demand and the ongoing recovery of the global electronics sector.
“Overall, we expect labour market performance in 2024 to be stronger compared to 2023,” the ministry said.
However, OCBC chief economist Selena Ling cautioned that external headwinds could temper optimism for the coming year.
Factors such as the potential reintroduction of trade tariffs under Trump 2.0, ongoing US-China tensions, geopolitical conflicts in various hot spots – including the latest developments in Syria – and the uncertainty surrounding the US Federal Reserve’s rate cut trajectory may prompt employers to adopt a wait-and-see approach, she said.
While employers are unlikely to ramp up layoffs, they may remain cautious in hiring and adjusting wages or bonuses in the near term, until the economic and business outlook becomes clearer, she added.
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