Hiring and wage growth in Singapore to slow down in Q4

Fewer organisations are expected to hire or raise wages in the coming months, according to advance labour market estimates released by Singapore’s Ministry of Manpower (MOM). The ministry’s data reflects a cautious outlook for Q4’2024 as global economic risks continue to shape business strategies.

The proportion of organisations intending to hire in Q4 has dropped to 43.2%, down from 49.4% in Q3. Similarly, only 15.6% of organisations plan to increase wages in the upcoming quarter, a significant decrease from the 28.6% recorded in Q3.  

“As global economic risks such as heightened geopolitical tensions and trade conflicts persist, organisations are likely to prioritise maintaining current operations over expansion or wage increases,” said MOM. Despite these challenges, the ministry noted that seasonal hiring for the year-end festive period and the positive economic outlook, reflected in Singapore’s revised GDP growth forecast, should support continued employment growth.

Preliminary data for Q3 showed strong employment growth, with total employment—excluding migrant domestic employees—rising by 24,100, more than double the increase of 11,300 in Q2. Growth was particularly strong in sectors such as information and communications, professional services, and health and social services, underscoring the steady demand for resident employees in high-growth industries.

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Non-resident employment also rose, driven largely by work permit holders in construction and manufacturing. “These positions are typically less sought after by residents, or there may be a limited pool of local candidates available. As a result, organisations seek to bring in work permit holders to meet their staffing needs,” MOM explained.

Singapore’s overall unemployment rate edged down slightly to 1.8% in September, from 1.9% in August, while the rates for residents and citizens held steady at 2.6% and 2.7%, respectively. Retrenchments also declined, falling to 2,900 in Q3 from 3.270 in Q2. Business reorganisation and restructuring continued to be the leading causes of job losses, though retrenchments remained stable or decreased across most sectors, reported CNA.