SINGAPORE – 2024 saw fewer job cuts overall but slower employment growth since the country began rebounding after the pandemic.

Organisations in Singapore are now slowing down in hiring and firing employees and are instead focusing on retaining them, the latest data from the Ministry of Manpower suggest.

The number of layoffs fell year on year. There were 12,930 job cuts in 2024 compared to 14,590 in 2023. There have also been no drastic increases across sectors, MoM said.

However, Q4 2024 also saw an uptick in layoffs, at 3,600 job cuts, compared with the previous quarter, where 3,050 jobs were shed.

“The incidence of retrenchment also declined from 6.7 retrenched per 1,000 employees in 2023 to 5.8 in 2024,” the ministry said.

“Business reorganisation or restructuring was the primary reason for retrenchments in 2024.”

Still, the number of retrenchments throughout the year has not caused alarm among economists over the potential of a recession.

Meanwhile, Singapore’s overall unemployment rate held steady at 2.0% for 2024.

“The unemployment situation remained relatively stable and low throughout the year, and annual rates remained broadly consistent from 2023,” MoM said.

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A slowdown in employment growth in 2024

Total employment still grew but at a slower pace: it is expected to reach 45,500 for 2024, excluding foreign domestic workers, once MoM releases the full report in March. The figure is significantly lower than the 78,800 employed a year prior.

Singapore finished the year strong with more citizens and permanent residents employed in 2024 than 2023.

Resident employment was at 8,700 in Q4 2024, a remarkable decline following the 22,300 employed in the previous quarter. However, the number is still higher than the 3,900 at work in Q4 2023.

More residents are employed in sectors, such as professional services, financial services, and health & social services, where demand for highly trained talent remains high.

“There was also an uptick in retail trade due to year-end seasonal hiring, following declines in earlier quarters,” MoM said.

“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,” the ministry added.

Meanwhile, non-resident employment in the information & communication sector declined.

Singapore's labour market to remain strong

The Manpower Ministry expects the economic climate to improve and the labour market to maintain its growth trajectory.

While the focus of the recent two quarters have been on talent retention, some employers are also keen to increase their headcount moving forward.

“The proportion of companies expecting to hire more workers increased from 43% in September to 46% in December,” MoM said.

About a third of businesses also plan to raise wages – double the 16% who said so in September.

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

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Demographic changes in Singapore's labour force

MoM zeroed in on demographic changes in Singapore’s labour force.

“Employers should recognise the increasing manpower constraints as the resident workforce ages and shrinks in the longer term. With an already high resident labour force participation rate by international standards and low resident unemployment, there is limited headroom for resident employment to keep expanding,” MoM said.

“Employers need to maximise the potential of their employees by investing in human capital development. 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.”