In the first quarter of 2024, Singapore’s employment growth has eased, reflecting a slowdown from previous quarters. Data from the Ministry of Manpower (MOM) indicates that total employment, excluding migrant domestic workers, increased by 4,900, compared to 7,500 in Q4 2023.

The main driver of the slowdown was a reduction in non-resident employment, particularly in the construction sector. This marks the first decline since Q4 2021. The drop was largely attributed to the tighter foreign worker quotas that came into effect on January 1, 2024, reducing the dependency ratio ceiling (DRC) in construction.

Resident employment, however, showed a slight increase, and MOM emphasized that this growth was consistent with non-recessionary periods. Despite this positive trend, construction firms were impacted by the stricter foreign worker rules, which limit the number of S Pass and work permit holders they can employ.

There were also minor employment declines in manufacturing and information and communications, sectors sensitive to global economic fluctuations. Economists noted that the manufacturing sector saw fewer retrenchments but experienced weak hiring due to ongoing uncertainties in global markets.

Retrenchments overall dropped slightly in Q1, with 3,000 layoffs recorded, down from 3,460 in the previous quarter. However, unemployment rates edged up marginally, with the overall unemployment rate at 2.1%, and resident unemployment rising to 3%.

Looking ahead, business sentiment remains mixed. While more firms plan to hire in the next quarter, wage growth may slow, as fewer companies indicated plans to raise wages in the short term.