Job Market Overview

SINGAPORE – The Ministry of Manpower (MOM) has reported that while job vacancies saw a decline in the third quarter of 2024, the overall employment landscape remains promising. Higher-skilled and higher-paying sectors experienced robust growth, which is expected to continue into the year-end festivities.

Job Vacancy Statistics

As of September 2024, the number of job vacancies was recorded at 63,400, a noticeable drop from 81,200 in June. This marks a continuous downslide from a peak of 124,400 job openings back in March 2022. The decrease particularly stems from the construction, transportation and storage, and manufacturing sectors, where many lower-skilled positions have been filled by work permit holders.

Labour Market Dynamics

In a silver lining, MOM pointed out that there are still more job openings than unemployed individuals; as of September, there were 1.39 job vacancies for every unemployed person, a slight decrease from a ratio of 1.67 in June. This indicates a tighter labour market, despite the drop in vacancies.

Seasonal Demand Surge

As the festive season approaches, MOM anticipates an uptick in labour demand, driven by traditional hiring boosts associated with year-end celebrations. Employers seem to have successfully filled many vacancies post-pandemic, with a noted decline in resignation rates from 1.7% in 2022 to 1.3% in the third quarter of 2024.

Economic Outlook

The labour market is expected to remain tight with low unemployment rates, but this tightness may gradually ease as more job vacancies are filled. This comes amidst a notable increase in resident employment, which focuses primarily on Singaporeans and permanent residents (PRs). In Q3, resident employment grew by 4,000, bouncing back from a seasonal decline of 600 observed in Q2, largely thanks to strong hiring in sectors like information and communications, professional services, and financial services.

Non-Resident Employment Trends

Additionally, non-resident employment, particularly among S Pass and Employment Pass (EP) holders, surged by 18,200, mainly attributed to the hiring of work permit holders in construction and manufacturing—a sector facing chronic shortages of resident workers for blue-collar jobs.

Overall Employment Growth

Overall, total employment saw a healthy increase of 22,300 in Q3, nearly doubling the 11,300 growth reported in the previous quarter. Notably, retrenchments decreased from 3,270 in the previous quarter to 3,050, indicating a stable job market. Furthermore, the number of employees on short workweeks or temporary layoffs remained low, suggesting a positive business sentiment as firms gear up for the festive demand.

Job Retention Rates

Interestingly, the job retention landscape appears hopeful as well; the rate at which residents find employment within six months of being laid off improved from 55% in the previous quarter to 60.4% in September.

Conclusion

In conclusion, even though current job vacancies have dipped, the outlook remains optimistic as year-end celebrations loom, predicted to bring a new wave of employment opportunities for Singaporeans. Keep an eye on the job market—it may just be the right time to find that coveted position!