Job vacancies increase slightly, but retrenchment recovery slows for some workers
In the fourth quarter of 2023, Singapore saw a slight increase in job vacancies, reaching 79,800 in December, up from 78,200 in September. This marked the first increase in vacancies after a six-quarter decline following the peak in March 2022. Despite this, the re-entry rate for residents retrenched six months earlier fell to 61.5%, down from 65.3% in the previous quarter.
The ratio of job vacancies to unemployed persons stood at 1.74, signaling a “moderately tight labour market” since March 2021. Sectors such as financial and insurance services, along with professional services, showed the highest increases in vacancies, indicating strong demand in these areas.
However, while overall labour demand is expected to strengthen as Singapore’s economy improves in 2024, business restructuring and reorganisation could lead to continued retrenchments. Despite the challenges, sectors like financial services are expected to see employment growth, while others, such as manufacturing, may experience slower recovery.
The number of retrenched residents re-entering employment has slowed due to a higher proportion of older workers in the retrenched cohort. Nonetheless, the low unemployment rate, stable at 2% overall, reflects the ongoing resilience of Singapore’s labour market.
