Singapore’s labour market sees growth and challenges in 2024

Singapore’s labour market showed resilience in 2024, with workforce expansion, low labour underutilisation, and rising incomes. According to the Ministry of Manpower (MOM)’s Labour Force in Singapore Advance Release 2024, the nation’s labour force participation rate remains among the highest globally, even as population ageing continues to present challenges.

The overall labour force participation rate dipped slightly from 68.6% in 2023 to 68.2% in 2024 due to the growing proportion of seniors. However, participation rates increased across most age groups, particularly among employees aged 55 and above, reflecting efforts to improve senior employability. Singapore’s elderly support ratio—residents aged 20 to 64 per elderly person aged 65 and over—has nearly halved over the past decade, intensifying the need for foreign employees to maintain economic support for the ageing population.

Income growth in 2024 was robust, with median monthly incomes rising from S$5,197 (US$3,877) in 2023 to S$5,500 (US$4,104). Real incomes rebounded as inflation eased, benefiting both lower-income and median-income employees. Income growth was also inclusive, with lower-income earners experiencing a faster rise, improving income equity. Employees who switched industries often saw significant pay increases, particularly in high-growth sectors like financial services and information and communications.

READ MORE: Singapore’s lower-wage employees see income growth rebound

Inclusivity remained a key focus, as the employment rate for persons with disabilities aged 15 to 64 rose to 33.6%, up from 32.7% in 2023 and 28.2% in 2019. This improvement reflects enhanced employer support and training initiatives aimed at reaching a 40% employment rate for persons with disabilities by 2030.

Labour underutilisation stayed low, with the number of discouraged employees declining to 7,400 in 2024 from 9,100 the previous year. The unemployment rate also remained low across occupational groups, with professionals, managers, executives, and technicians (PMETs) recording 2.7% and non-PMETs at 3.4%.

To sustain growth and tackle demographic challenges, the government is encouraging employees to upskill and reskill while employers are urged to leverage programmes like Workforce Singapore’s Career Conversion Programme. Upcoming policies, including the Tripartite Guidelines on Flexible Work Arrangements and the Workplace Fairness Legislation, aim to create more inclusive and flexible workplaces.