Labour Market Expands Despite Seasonal Decline in Resident Employment
Singapore’s total employment increased in the second quarter of 2024, despite a slight seasonal dip in resident employment, according to preliminary data released by the Ministry of Manpower (MOM) on July 31.
Excluding migrant domestic workers, total employment grew by 11,300 in Q2, more than doubling the 4,700 increase recorded in the previous quarter. While resident employment saw slight declines due to seasonal adjustments, non-resident employment rebounded, accounting for the entire employment growth during this period.
MOM noted that employment momentum is expected to continue as Singapore’s economy gradually picks up. However, the slowing growth of the resident workforce and persistently low unemployment rates may lead to a more muted increase in resident employment.
Key highlights from the report include:
🔹 Resident Employment Trends: While employment in financial services, healthcare, IT, and professional services remained strong, the retail sector experienced slight job losses. Seasonal hiring patterns also contributed to fluctuations.
🔹 Non-Resident Employment Recovery: After a decline in Q1 – the first since Q3 2021 – non-resident employment rebounded, mainly driven by work permit holders in construction and manufacturing. This reflects continued labour demand and companies adjusting to new dependency ratio ceilings for foreign workers, which were lowered from 1:7 to 1:5 in January.
With sustained wage growth and an improving economic outlook, Singapore’s labour market is expected to remain stable, although employment growth may moderate as workforce constraints persist.
