Singapore’s labour market continued to expand in the fourth quarter of 2023 with the total employment growing, while layoffs eased, according to the Ministry of Manpower.

Total employment (excluding migrant domestic workers) continued to grow for the ninth consecutive quarter, expanding by 8,400 in Q4 2023. However, this growth moderated significantly in Q4 2023 for both residents and non-residents compared to previous quarters. The Ministry said this moderation was not unexpected as weaker hiring expectations and declining job vacancies from previous quarters indicated cooling labour demand.

Resident employment growth was largely in health & social services and public administration & education, as well as in retail trade and food & beverage services due to seasonal hiring in Q4 2023.

Meanwhile, after the sharp, post-pandemic rebound in 2022, total employment growth for the full year of 2023 was moderate amid weaker economic conditions. The more muted pace of growth was seen for both residents and non-residents.

Layoffs fell to 3,200 in Q4 2023 from 4,110 in Q3 2023, after a surge in wholesale trade layoffs in the previous quarter. While layoffs rose in electronics manufacturing, the number of layoffs in other sectors remained broadly stable or declined.

For the full year of 2023, the number of layoffs rose from a record-low of 6,440 in 2022 to 14,320 in 2023. Business reorganisation or restructuring remained the top reason for layoffs in 2023, due in part to the impact of global economic headwinds on outward-oriented sectors such as wholesale trade, IT services and electronics manufacturing.

The Ministry’s data also found that the unemployment rates were unchanged in December 2023 (overall: 2.0%; resident: 2.8%; and citizen: 2.9%).

For the full year of 2023, the average unemployment rates remained stable and low amid a still-tight labour market (overall: 2.1% in 2022 vs. 1.9% in 2023; resident: 2.9% vs. 2.7%; citizen: 3.0% vs. 2.9%).

Further data found that the proportion of firms which indicated an intention to hire in the next three months rose from 42.8% in the previous quarter to 47.7% in Q4 2023. Likewise, the proportion of firms with an intention to raise wages rose from 18.0% to 32.6%. Nevertheless, as downside risks in the global economy remain, business reorganisation or restructuring will continue and may lead to further layoffs.