While Singapore’s employment grew for the sixth consecutive quarter and unemployment rates remaining low, the number of layoffs continued to rise in the first quarter of 2023, the Ministry of Manpower reported Friday.

Overall, the Ministry said its advance estimates showed that the labour market continued to expand in Q1 2023, albeit at a more moderated pace compared to the previous quarter.

According to the latest quarterly statistics, total employment, excluding migrant domestic workers, grew by 34,500 in Q1 2023, marking the sixth consecutive quarter of growth. However, both resident and non-resident employment growth have moderated. As of March 2023, resident employment continued to surpass its pre-pandemic level, and non-resident employment grew above its pre-pandemic level for the first time.

Meanwhile, statistics show that most of the employment growth came from non-residents, primarily in construction. Resident employment saw the largest gains in community, social and personal services, and financial services.

The overall unemployment also continued to trend downward, falling to 1.8%, a decline of 0.4% year-on-year. The unemployment rates for residents stood at 2.5% and for citizens it stood at 2.7%.  There were 61,500 unemployed residents in March 2023, of which 54,900 were citizens. The share of citizens among unemployed residents is comparable with that of the labour force.

Although the labor market seems to be expanding, layoffs are rising to levels that have not been seen since 2016 and 2017, the ministry said. The increases were seen in manufacturing, construction, and services sectors, and attributed to reorganisation, restructuring, and downturn in the industry.

The ministry said that 65% of businesses polled said they were optimistic about hiring and intend to increase headcount and raise wages.