Employers in Singapore plan wage increases and hiring surge

In Q1'2024, 32.6% of organisations in Singapore plan wage increases, while almost half intend to increase headcount.
By: | March 18, 2024
Topics: Compensation and Benefits | Mobility | News | Recruitment | Singapore

Singapore’s Ministry of Manpower (MOM) released its latest labour market report that revealed approximately one-third of employers in Singapore are gearing up to boost wages in Q1’2024.

The report indicated that based on a poll conducted in December 2023, around 32.6% of organisations expressed intentions to raise wages within the initial three months of 2024. This represents an increase from the previous low of 18% reported in September 2023.

Moreover, MOM’s findings underscored a positive trend with approximately 47.7% of surveyed organisations planning to engage in hiring during the same period, up from 42.8% in September last year.

The buoyant outlook is aligned with an improvement in business sentiments as forecasted by the Ministry of Trade and Industry, indicating brighter economic growth prospects for 2024. However, amidst persistent global headwinds, MOM anticipates continued business restructuring and reorganisations, potentially leading to further retrenchments.

According to the report, retrenchments in Singapore surged in 2023, more than doubling from the preceding year. The figures soared from a record low of 6,440 in 2022 to 14,590 in 2023, closely resembling pre-pandemic levels.

While the total number of retrenchments aligned with pre-pandemic norms, the number of organisations executing retrenchments in 2023 surpassed the pre-pandemic average. The report highlighted concerns for middle-aged employees, particularly professionals, managers, executives, and technicians (PMETs), who faced heightened risks of retrenchment.

READ MORE: Singapore unveils SkillsFuture overhaul and Workfare enhancements

Patrick Tay, Assistant Secretary-General of the National Trades Union Congress (NTUC), highlighted the importance of upskilling and training to enhance employability among affected employees, commending government initiatives such as the S$4,000 (US$2,991) SkillsFuture top-up scheme and enhanced subsidiaries for mid-career employees.

Looking ahead, MOM reaffirmed its commitment to collaborate with Singaporeans to sustain economic competitiveness and facilitate better job opportunities amid global uncertainties. Tay echoed sentiments, urging for structured career progression models and improved wages to attract more Singaporeans to key sectors, reported CNA.