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MOM Report: Labour Market Fourth Quarter 2023

March 18, 2024
MOM Report: Labour Market Fourth Quarter 2023
This quarterly release analyses the labour market situation. Topics covered include unemployment, employment, retrenchment, re-entry into employment, job vacancy, labour turnover and hours worked. (Photo credit: MOM)

 

Source: Ministry of Manpower Singapore Report, Labour Market Fourth Quarter 2023

  • The labour market demonstrated resilience in 2023 despite global headwinds and the inflationary environment. Total employment grew by 88,400 in 2023. This was largely driven by non-resident employment growth, with the resident employment rate remaining high and the resident unemployment rate (2.8%) remaining low.
  • The main findings highlighted in the report were as follows:
    • Total employment grew by 88,400 in 2023. In 4Q 2023, total employment expanded for the ninth consecutive quarter by 7,500. However, this increase has moderated significantly in 4Q 2023 for both residents (400) and non-residents (7,000) compared to 3Q 2023 (resident: 2,800; non-resident: 20,800).
    • Unemployment rates remained stable and low in December 2023 (overall: 2.0%; resident: 2.8%; citizen: 2.9%).
    • As firms restructured or reorganised their businesses, the number and incidence of retrenchments rose in 2023 (14,590 or 6.7 per 1,000 employees) compared to the low in 2022 (6,440 or 3.1) but was similar to the pre-pandemic levels (average for 2015 to 2019: 14,180 or 6.7).
    • While the re-entry rate (six months post retrenchment) among retrenched workers declined slightly in 4Q 2023 to 61.5% from the previous quarter (65.3%), it remained within the range of 60.0% to 70.0% seen during the pre-pandemic years (annual average for 2015 to 2019: 65.7%).
    • After six consecutive quarters of decline from the peak of 124,400 in March 2022, the number of job vacancies rose slightly in December 2023 (79,800), from September 2023 (78,200).
  • Looking ahead, MOM surveys indicate an improvement in business sentiments alongside MTI’s forecast of improved economic growth prospects for 2024. More employers have plans to hire or increase wages in 2024.  With global headwinds persisting, we also expect business restructuring and reorganisation to continue, which may contribute to further retrenchments. The Government and tripartite partners encourage and support employers and workers to press on with business transformation and upskilling.

Find more details and the full report at: go.gov.sg/lmr4q2023