Singapore retrenchments fall for second straight quarter
SINGAPORE: Retrenchments in Singapore fell for the second straight quarter while the hiring outlook improved, according to preliminary first-quarter labour market data from by the Manpower Ministry (MoM).

The data released yesterday also showed that total employment grew by 4,900 in the January-March quarter, down from 7,500 in the previous quarter. The growth came wholly from Singaporeans and permanent residents (PRs).

At the same time, non-resident employment contracted for the first time since the third quarter of 2021 due to cooling labour demand, mainly in construction as tighter foreign-worker quotas kicked in.

Although the growth in total employment dropped, MoM said it was higher than in the previous quarters in 2023 – and comparable to growth in non-recessionary periods.

“Nevertheless, applications for higher-skilled non-residents, meaning Employment Pass holders, have picked up in tandem with improved business expectations,” the ministry also noted.

Retrenchments in the first quarter fell to 3,000 from 3,460 in the fourth quarter of 2023, it said, adding that business reorganisation or restructuring remained the top reason for retrenchments in the first quarter of 2024, as businesses press on with transformation efforts.

It said the Singapore economy is expected to improve in 2024 and “labour demand, which tends to lag economic growth, should strengthen correspondingly”.

MoM said its forward-looking polls suggest improved hiring demand, with 50.7% of firms indicating an intention to hire in the next three months. This is up from 47.7% in the previous quarterly survey.

However, wage improvements could slow, as the proportion of firms with an intention to raise wages declined from 32.6% to 26.1%, MoM noted.

MoM said the increase in resident employment was mainly in growth sectors such as financial services, health and social services, as well as public administration and education.

“Employment growth in these sectors outweighed the seasonal declines in retail trade, food and beverage services and accommodation following the end of the festive period,” it noted.

The decline in non-resident employment was mainly found in the construction sector, in which most of the decline was among work-permit holders.

MoM noted that employment in the sector fell for the first time since the fourth quarter of 2021, as construction firms adapted to the Jan 1 reduction in the sector’s foreign-worker quota.

Smaller declines were also seen in outward-oriented sectors such as manufacturing, and information and communications, it added. — The Straits Times/ANN
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Retrenchments in Singapore fell for the second straight quarter while the hiring outlook improved, according to preliminary first-quarter labour market data from by the Manpower Ministry (MoM).