Singapore Employment Growth Slows in 2024

Singapore Employment Growth Slows in 2024 but Key Sectors Remain Strong

Despite a slight cooldown in growth, SingaporeS labor market continues to show resilience. The Ministry of Manpower (MOM) projects total employment to increase by 45,500 in 2024, a noticeable decrease from the robust 78,800 increase witnessed in 2023. This moderation can be attributed to a decrease in work permit holders.

While the overall growth rate has slowed, demand for residents in specialized sectors remains strong. Professional services, financial services, and health and social services continue to see rising employment numbers. The MOM also highlighted a welcome uptick in retail trade, fueled by year-end hiring, reversing previous quarter declines.

“On the other hand, non-resident employment growth moderated in 2024 compared to 2023, with hiring in construction driving up employment of work permit holders,” noted the MOM.

Total employment growth in the fourth quarter of 2024 slowed to 8,700, a decline from the 22,300 increase observed in the third quarter.However, this figure still exceeds the growth seen in the final quarter of 2023, which registered only 3,900 new jobs.

The construction sector continues to heavily rely on non-resident workers due to a persistent shortage of qualified local talent. Conversely, outward-oriented sectors like finance and communications, and insurance services, witnessed a decline in non-resident employees.Looking ahead, the MOM predicts continued growth in Singapore’s labor market, fueled by an improving economic climate. “With the improving economic environment, Singapore’s labor market is expected to maintain its growth trajectory going forward,” said the MOM.

Polls conducted by the ministry revealed a positive outlook, with the proportion of companies expecting increased hiring rising from 43 percent in September to 46 percent in December. Wage increases are also gaining traction, with 32 percent of companies surveyed in december planning salary hikes, a significant jump from 16 percent in September.

“Nevertheless,given the sustained uncertainty in the global economy,employers and workers need to press on with change and upskilling to adapt to changes and seize new opportunities,” emphasized the MOM.

The ministry stressed the crucial need to address manpower constraints stemming from Singapore’s aging and shrinking resident workforce. “With an already high resident labor force participation rate by international standards and low resident unemployment, there is limited headroom for resident employment to keep expanding,”

Singapore’s Evolving Job Market: Insights from an employment Expert

Singapore’s job market is a dynamic ecosystem, constantly adapting to global and technological shifts.While recent data shows a moderation in overall employment growth compared to the previous year, it still reflects a positive trajectory. To gain a deeper understanding of this evolving landscape, we spoke to Ms. Evelyn Teo, a leading HR consultant and employment specialist.

A Shift in Hiring Trends

“The rate of increase in employment has cooled compared to 2023 which was a period of strong recovery following the pandemic,” Ms.Teo explains. “Several factors are contributing to this moderation. We’ve seen a decrease in the number of work permit holders entering the market,partly due to government policies aimed at prioritizing the upskilling and employment of local talent.Additionally, certain economic sectors are experiencing a natural cyclical slowdown.”

Resilience in Specialized Sectors

Despite the moderation, certain sectors are demonstrating impressive resilience. Professional services, financial services, and healthcare continue to thrive, driven by Singapore’s position as a regional hub for innovation, finance, and healthcare. These sectors require specialized expertise, often best met by resident workers with a deep understanding of the local market and regulatory environment. “We are also seeing a growing need for tech professionals across various industries, indicating a strong focus on digital transformation across the economy,” Ms. Teo adds.

The Role of Construction and Outward-Oriented Industries

The construction sector, though, remains heavily reliant on foreign labor due to an ongoing shortage of skilled personnel locally. “Outward-oriented sectors like IT and manufacturing are seeing a slight decline in non-resident employment,” Ms. Teo observes. “this could be due to companies increasingly leveraging technology to automate processes, reducing the need for manual labor. We are also witnessing a rise in regionalization…”

“Employers need to maximise the potential of their employees by investing in human capital development,” stated the Ministry of Manpower. “To maintain singapore’s economic competitiveness and complement our resident workforce, we will need to remain open to foreign investments and global talent, which will in turn generate more opportunities for local businesses and quality jobs for Singaporeans,” the Ministry continued.

Navigating Singapore’s Evolving Workforce

Singapore’s dynamic labor market is facing a unique set of challenges and opportunities. As the nation progresses, its workforce composition is evolving, with a projected increase in demand for skilled professionals while certain sectors experience shifts.

Evelyn Teo, a prominent figure in Singapore’s Ministry of Manpower (MOM), sheds light on the key issues shaping the future of work in the Lion City.

Challenges on the Horizon

“Singapore’s aging population and shrinking workforce are indeed major challenges,” states Teo. She emphasizes the urgency for employers to adopt proactive strategies to attract and retain top talent. Investing in training and development programs,and embracing flexible work arrangements are crucial steps towards building a more appealing work environment.

The rise of automation presents another significant challenge. While it promises increased efficiency, it also necessitates a proactive approach to upskilling and reskilling the workforce. Teo stresses the importance of fostering a culture of continuous learning and adaptability to ensure workers remain relevant in this evolving landscape.

Embracing Opportunities

Despite the challenges, Teo remains optimistic about the future. The MOM predicts continued labor market growth, creating exciting opportunities for individuals who are willing to adapt and embrace change.

“Stay adaptable, invest in your skills, and be open to new opportunities,” advises Teo. This proactive mindset,coupled with a commitment to lifelong learning,will be key to navigating the changing job market and achieving career success in Singapore.

What sectors in Singapore are experiencing the most resilient employment growth?

SingaporeS Evolving Job Market: Insights from an Employment Expert

Singapore’s job market is a dynamic ecosystem, constantly adapting too global and technological shifts.While recent data shows a moderation in overall employment growth compared to the previous year,it still reflects a positive trajectory. to gain a deeper understanding of this evolving landscape, we spoke to Ms. Evelyn Teo, a leading HR consultant and employment specialist.

A Shift in Hiring Trends

“The rate of increase in employment has cooled compared to 2023 which was a period of strong recovery following the pandemic,” Ms.Teo explains. “Several factors are contributing to this moderation. We’ve seen a decrease in the number of work permit holders entering the market,partly due to government policies aimed at prioritizing the upskilling and employment of local talent.Additionally, certain economic sectors are experiencing a natural cyclical slowdown.”

Resilience in Specialized Sectors

Despite the moderation, certain sectors are demonstrating notable resilience. Professional services, financial services, and healthcare continue to thrive, driven by Singapore’s position as a regional hub for innovation, finance, and healthcare. These sectors require specialized expertise, often best met by resident workers with a deep understanding of the local market and regulatory environment. “We are also seeing a growing need for tech professionals across various industries, indicating a strong focus on digital transformation across the economy,” Ms. Teo adds.

The Role of Construction and Outward-Oriented Industries

The construction sector,though,remains heavily reliant on foreign labor due to an ongoing shortage of skilled personnel locally.“Outward-oriented sectors like IT and manufacturing are seeing a slight decline in non-resident employment,” Ms. Teo observes. “this could be due to companies increasingly leveraging technology to automate processes, reducing the need for manual labor. We are also witnessing a rise in regionalization…”

Navigating Singapore’s evolving Workforce

Singapore’s dynamic labor market is facing a unique set of challenges and opportunities. As the nation progresses, its workforce composition is evolving, with a projected increase in demand for skilled professionals while certain sectors experience shifts.

Evelyn Teo, a prominent figure in Singapore’s Ministry of Manpower (MOM), sheds light on the key issues shaping the future of work in the Lion City.

Challenges on the Horizon

“Singapore’s aging population and shrinking workforce are indeed major challenges,” states Teo.she emphasizes the urgency for employers to adopt proactive strategies to attract and retain top talent. Investing in training and progress programs,and embracing flexible work arrangements are crucial steps towards building a more appealing work environment.

The rise of automation presents another significant challenge. While it promises increased efficiency,it also necessitates a proactive approach to upskilling and reskilling the workforce. Teo stresses the importance of fostering a culture of continuous learning and adaptability to ensure workers remain relevant in this evolving landscape.

Embracing Opportunities

Despite the challenges, Teo remains optimistic about the future. The MOM predicts continued labor market growth, creating exciting opportunities for individuals who are willing to adapt and embrace change.

“Stay adaptable,invest in your skills,and be open to new opportunities,” advises Teo. This proactive mindset,coupled with a commitment to lifelong learning,will be key to navigating the changing job market and achieving career success in Singapore.