Singapore’s labour market improved in 2022 compared to 2021 with the unemployment rate reporting a decline, according to research from the Ministry of Manpower.

The overall unemployment rate fell from 2.7% in 2021 to 2.1% in 2022. The resident unemployment rate fell over the year from 3.5% to 2.9% while the citizen unemployment rate fell from 3.7% to 3.0%. All rates were also below pre-pandemic levels.

Total employment registered a record-high increase of 227,800 in 2022, bringing total employment to 2.9% above the pre-pandemic 2019 level.

Resident employment continued its steady growth, increasing by 26,300 in 2022. The increase was mostly in sectors such as financial services and information & communications. The Ministry noted that by December 2022, the resident employment level has surpassed 2019’s level by 4.8%.

Non-resident (foreign) employment contributed to the bulk of the increase in total employment (201,600). This increase was primarily due to the hiring of Work Permit Holders (WP+) in sectors such as construction and manufacturing as employers backfilled positions following the significant relaxation of border controls in April 2022.

Despite increasing in the last two quarters of 2022, the total number of layoffs for 2022 (6,440) was lower than pre-pandemic levels. The top reason for layoffs was business reorganisation/restructuring. The percentage of dismissed residents who found employment (six months post-retrenchment) increased to 73.1% in Q4 2022, the highest since Q2 2015 (73.6%).

Looking ahead, the Ministry stated, “Global economic headwinds and slower growth may weigh on labour demand going forward, although hiring sentiments in December 2022 remain positive. Employment growth is likely to ease from 2022’s increase and be uneven across sectors.”