RETRENCHMENTS DOWN, UNEMPLOYMENT RATES UP IN MARCH
Retrenchments in the first quarter of this year dipped to 3,000 from the 3,460 reported in the last quarter of 2023.
Business reorganisation or restructuring remained the top reason for retrenchments during the quarter, MOM said.
While unemployment rates remained within their pre-pandemic ranges, they increased slightly in March.
As of March, overall unemployment stood at 2.1 per cent; resident unemployment at 3 per cent; and citizen unemployment at 3.1 per cent.
“The increase was not unexpected – we had previously highlighted that unemployment rates could edge up amid higher retrenchments in 3Q and 4Q 2023,” MOM said.
“However, we do not expect sustained increases in unemployment rates, given continued labour market tightness.”
OUTLOOK
With Ministry of Trade and Industry advance estimates showing that Singapore’s economy is expected to improve in 2024, labour demand should strengthen correspondingly, MOM said, adding that labour demand tends to lag economic growth.
“MOM’s forward-looking polls also suggested improved hiring demand, with 50.7 per cent of firms indicating an intention to hire in the next three months,” the ministry said. This is an increase from the 47.7 per cent reported previously.
“However, wage improvements could slow, as the proportion of firms with an intention to raise wages declined from 32.6 per cent to 26.1 per cent,” MOM added.
With slowing resident workforce growth and low resident unemployment rates, it will be less likely for resident workforce growth to sustain Singapore’s economic growth, MOM said.
“Instead, MOM, together with economic agencies, will help our businesses press on with transformation to become more manpower-lean and productive, generating better jobs for Singaporeans in the workforce and resources for national development,” it said.
“To achieve this, it is imperative that Singapore continues to attract highly skilled foreign workers that complement our resident workforce and help our businesses and economy to compete and to thrive.”
The ministry added that the government is advising employers and workers “to make full use of available programmes to remain competitive and resilient amidst economic uncertainty”.
“Workers should continue to upskill and be open to new opportunities. Employers should press on with business transformation and equip their workers for expanded or redesigned job roles,” MOM said.
The labour market report for the first quarter of 2024, which is due for release in mid-June, will provide a comprehensive assessment and more details of the labour market situation during the quarter, MOM added.
