Singapore’s job vacancies saw a slight drop in the last annual quarter (Q2 2024). At the same time, the number of people who were laid off and found new jobs within six months also dropped.
This is based on the latest Labour Market Report shared by the Ministry of Manpower (MOM) earlier today.
But it’s not as bad as it sounds.
In fact, the labour market actually expanded faster in Q2 than in Q1. As the economy continues to expand, it brings about further growth and prospects for the local labour market.
The labour demand is still strong with a high number of job vacancies holding stable in Q2. From MOM’s findings, the number of job openings available exceeded that of the number of unemployed persons.
Amidst this tight labour market, unemployment rates improved in June and the resident long-term unemployment rate remained low at 0.8%.
Resident employment rose in sectors like Financial and Insurance Services, Information & Communications, as well as Professional Services.
Non-resident employment also increased in Q2, driven by the growth of Work Permit Holders in the Construction and Manufacturing industries. These are typically lower-skilled jobs that Singaporean residents aren’t keen on, the report stated.
Looking forward, MOM expects the labour market momentum to be sustained, with wages and employment continuing to grow in tandem with economic growth.
Large-scale events like annual year-end festivities, as well as the Formula One Singapore Grand Prix, are expected to boost resident employment.
“In the longer-term, we should expect resident employment growth to moderate given Singapore’s high labour force participation rate and slowing resident workforce growth,” MOM explained in the report.
“To complement our resident workforce growth and continue to create good jobs for Singaporeans, we need to remain open to global talent and attract foreign investments.” As foreign-owned firms make up about 20% of companies in Singapore, they in turn provide jobs for close to one-third of local residents.
The government is also taking note of this and has updated our foreign workforce policies. Doing so would ensure that businesses hire foreign workers of good quality and help in attracting global talent to Singapore.
At the same time, the local officials will continue to invest heavily in Singaporeans to empower them to compete strongly amidst continuous economic transformation.
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Featured Image Credit: PwC
