Overview of Employment Trend in 2023, Outlook for 2024

This month’s newsletter offers a comprehensive overview of the employment trends observed in 2023 and provides valuable insights into what lies ahead in 2024.

Notably, there’s a shift in work preferences, with just 1 out of 10 Singaporeans expressing a preference for the traditional 5-day office setup. Furthermore, there’s a growing interest among Singaporean employees towards adopting shorter work weeks.

Spearheaded by the local charity Workwell Leaders (WWL), the workplace wellbeing benchmark is introduced. It aims to establish a standard that not only assesses employee wellbeing but also underscores its significant impact on productivity, attrition rates, and innovation within organizations.

–

Recruitment Agency Singapore

Key Highlights of Labour Market Report 4Q 2023

Overview of 2023

• Despite global challenges and inflation, Singapore’s labour market showed resilience.
• Total employment grew by 88,400, largely driven by non-residents, while resident employment remained high and unemployment low at 2.8%.
• Labour demand cooled throughout the year, with slowing employment growth and declining job vacancies until a slight increase in December.
• The total number of retrenchments in 2023 (14,590) was more than double the record low seen in 2022 (6,440) but was similar to pre-pandemic levels. The top reason for retrenchments remained business reorganization/ restructuring in 2023.
• Despite this, the majority of retrenched workers found re-employment within six months, and long-term unemployment remained low at 0.7% in December.

Outlook for 2024:

• MOM surveys and MTI forecasts indicate improved business sentiments and economic growth prospects.
• More employers plan to hire or increase wages in 2024.
• However, global headwinds may persist, leading to continued business restructuring and potential further retrenchments.
• The government and tripartite partners encourage business transformation and upskilling initiatives to navigate these challenges.

4Q 2023 Total Employment

In Q4 2023, total employment rose by 7,500, marking the 9th consecutive quarter of growth. However, the increase notably slowed compared to Q3, with resident employment up by only 400 and non-resident employment by 7,000.

This moderation was expected due to weaker hiring expectations and declining job vacancies. Resident employment growth was seen in sectors like Retail and Food Services, albeit lower than in previous years. Non-residents, particularly in Construction, drove most of the employment growth.

4Q 2023 Unemployment Rates

Unemployment rates stayed low and stable in December 2023 and January 2024.

Most resident unemployment rates in December 2023 either matched or were below September 2023 levels. There was improvement for seniors aged 50 and over, with rates decreasing from September to December 2023.

However, the unemployment rate for younger residents aged 30 and below remained at 5.6% in December 2023, reflecting the inclusion of fresh graduates and students exploring various job opportunities.

4Q 2023 Retrenchment

In the 4Q 2023, the number of retrenchments decreased to 3,460, down from 4,110 in the 3rd quarter. This decline was primarily due to fewer retrenchments in Wholesale Trade, which had experienced a surge in the previous quarter. The incidence of retrenchment among residents decreased across nearly all occupational, education, and age groups in the 4th quarter.

While there was a slight increase in the incidence of retrenchments among young workers aged below 30, from 1.0 to 1.1 per 1,000 resident employees, they are still likely to find work within 6 months post-retrenchment.

Full report: Labour Market Report Fourth Quarter 2023 (mom.gov.sg)

Recruitment Agency Singapore

Only 1 in 10 Singaporeans Want to Work 5 Days a Week Onsite

Work preferences are shifting. Only 9% of Singaporeans prefer a traditional five-day office setup.

Flexibility is key, with 86% advocating for hybrid work arrangements. 38% are even willing to trade pay raises for flexibility.

Yet, 61% of companies push for more office time. Interestingly, onsite workers are more likely to seek new jobs. Flexibility isn’t just a perk—it’s crucial for talent retention and productivity.

Source: https://sbr.com.sg/hr-education/news/only-one-in-10-singaporeans-want-work-five-days-week-onsite (sbr.com.sg)

Recruitment Agency Singapore

j

Singapore Develops Workplace Wellbeing Benchmark

Spearheaded by local charity Workwell Leaders (WWL),  this initiative aims to create a benchmark that not only measures employee well-being but also emphasizes its substantial effects on productivity, attrition rates, and innovation within organizations.

Traditionally, organizations focused on programs like counseling or yoga, but WWL goes further, examining workplace behaviors, workload management, team collaboration, and fostering belonging.

This benchmark will be a global first, vital for transforming workplace cultures and benefiting both large corporations and SMEs. Supported by a diverse consortium, including government, academia, and industry experts, this initiative emphasizes the urgent need to address mental health challenges.

Source: https://hrmasia.com/singapore-develops-workplace-wellbeing-benchmark (hrmasia.com)

Recruitment Agency Singapore

More Employees in Singapore Eye Shorter Work Week

One-third of Singaporean employees foresee a four-day workweek becoming standard within five years, reveals a survey by ADP.

Alongside this trend, hybrid working models and flexible hours based on productivity are gaining popularity. Notably, Singapore leads the Asia-Pacific region in offering a four-day workweek for mental health benefits, with 67% enjoying some flexibility in working arrangements.

Despite this, many employees express dissatisfaction with current flexibility level. Flexible arrangements is important in attracting and retaining talent. Proactive communication between employees and managers is needed to optimize flexibility.

Source: https://hrmasia.com/more-employees-in-singapore-anticipate-normalisation-of-4-day-workweek/ (hrmasia.com)

Recruitment Agency in Singapore

Recruitment Agency Singapore

Disclaimer: Please use the information provided in this newsletter at your own discretion and risk. We are not responsible for any losses incurred by users in relation to the information provided in this newsletter and we seek your understanding.