Labor Market Advance Release: First Quarter 2024
Overview
The preliminary assessments indicate that the labor market sustained its growth trajectory in the first quarter of 2024, albeit at a moderated pace compared to previous periods. Notably, total employment (excluding Migrant Domestic Workers) expanded during the first quarter despite a moderately tight labor market environment. This growth was primarily propelled by an increase in resident employment, with unemployment rates remaining at low levels. Additionally, retrenchment figures decreased for the second consecutive quarter.
Total employment grew due to residents in 1Q 2024
Total employment expanded by 4,900 in the first quarter of 2024, a decrease from the previous quarter’s growth of 7,500. The growth in employment during this period was solely driven by an increase in resident employment, surpassing the growth observed in previous quarters of 2023 and aligning with patterns seen in non-recessionary periods. There has been an uptick in applications for higher-skilled non-residents, particularly Employment Pass holders, coinciding with improved business sentiment.
Retrenchments fell for the second consecutive quarter
Layoffs decreased for the second successive quarter to 3,000 in the first quarter of 2024, down from 3,460 in the fourth quarter of 2023. Business reorganization and restructuring continued to be the primary cause of layoffs in the first quarter of 2024, reflecting ongoing business transformation initiatives.
Unemployment rates remained within the pre-pandemic range
In March 2024, unemployment rates experienced a slight increase (overall: 2.1%; residents: 3.0%; citizens: 3.1%), although they remained within the typical range observed during non-recessionary periods. It’s anticipated that unemployment rates will not see sustained increases, considering the ongoing tightness in the labor market.
