Singapore’s total employment up by 24,800 in Q3; resident employment growth expected to lag: MOM

[SINGAPORE] Total employment in Singapore rose by 24,800 in the third quarter, led by strong growth in the manufacturing and construction sectors, according to advance estimates released by the Ministry of Manpower’s (MOM) on Thursday (Oct 30).

This was up from 10,400 in Q2. In the same quarter a year ago, total employment was up by 22,300.

Both resident and non-resident employment grew in Q3, MOM said in its labour market advance release report, without providing a breakdown.

However, it added resident employment growth may continue to lag that of non-residents in the months ahead, “given the already high resident labour force participation rate”.

Non-resident employment growth was mainly in work permit holders in the construction and manufacturing sectors, while remaining “relatively muted” in other sectors, the ministry said.

Employment in the manufacturing sector grew by 5,400 in Q3, from 900 in the previous quarter. In the construction sector, employment jumped to 13,700, from 5,800 in Q2.

These figures were the largest additions since the second half of 2022.

MOM noted that resident employment growth was concentrated in the services sector, notably in health and social services, as well as financial services.

Employment in the services sector, excluding migrant domestic workers, grew by 5,200 in Q3, from the previous quarter’s 3,700. This was the largest increase since Q3 2024.

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Global economic headwinds continued to weigh on outward-oriented sectors, leading to “subdued” resident employment growth in information and communications and professional services. Meanwhile, wholesale trade recorded a “sharp decline” in resident employment.

The ministry noted that non-resident employment contracted in these three outward-oriented sectors.

Accordingly, MOM said advance estimates showed “stronger than anticipated” labour market conditions in Q3, supported by continued economic growth. Singapore’s gross domestic product also beat expectations with a 2.9 per cent growth in Q3, based on advance estimates.

Unemployment

Unemployment rates remained steady in September this year, with the overall and resident rates inching up 0.1 percentage point.

Overall unemployment was 2 per cent, while the resident rate was 2.8 per cent. The citizen unemployment rate remains unchanged at 3 per cent.

MOM said these rates remained within the “non-recessionary range”.

There were 3,500 retrenchments in Q3, marginally lower than the previous quarter’s 3,540.

These were mainly in the services sector, which recorded an increase in layoffs to 2,900, from 2,750 in Q2.

The manufacturing sector reported 500 retrenchments, down from 650 in Q2, whereas the construction sector had 100 layoffs, down from 140.

Looking ahead, employment growth is expected to remain positive but uneven across sectors, while wage growth is expected to moderate, MOM said.

MOM’s business expectation polls showed hiring expectations rising slightly in Q4, although expectations varied across sectors.

Outward-oriented industries reported weaker hiring sentiments, it noted.

The proportion of firms planning wage increases continued to edge down across most sectors, with the largest declines in financial and insurance services and information and communications.