Fall in hiring, wage expectations among companies for Q4: Singapore advance estimates

SINGAPORE: Fewer companies have reported an intention to hire or to raise wages in the next three months, according to advance labour market estimates released by the Manpower Ministry (MOM) on Tuesday (Oct 29).
The percentage of companies that intend to hire in the fourth quarter of 2024 fell to 43.2 per cent, from 49.4 per cent for the third quarter of 2024. 
Similarly, the percentage of companies that plan to raise wages in Q4 fell to 15.6 per cent, from 28.6 per cent for the third quarter.
“As global economic risks such as heightened geopolitical tensions and trade conflicts persist, firms are likely to prioritise maintaining current operations over expansion or wage increases,” said MOM.
“Nonetheless, considering the anticipated year-end hiring for the festive season and the positive economic outlook from the revised GDP growth forecast, we expect employment to continue increasing in the next quarter, and the labour market to remain tight.”
A tight labour market means a relatively low unemployment rate and a scarcity of available workers to fill job openings.
The preliminary data showed that total employment, excluding migrant domestic workers, grew by 24,100 in the third quarter of the year, more than double the growth of 11,300 in the second quarter.
Resident employment continued to rise in growth sectors such as information and communications, professional services, and health and social services, indicating a steady supply of quality jobs and favourable employment prospects for resident workers, said MOM.
Non-resident employment also increased in the third quarter, with the majority coming from work permit holders working in non-PMET roles in construction and manufacturing, similar to the second quarter.
“These positions are typically less sought after by residents, or there may be a limited pool of local candidates available. As a result, businesses seek to bring in WPHs (work permit holders) to meet their staffing needs,” said MOM.
Employment among higher-skilled pass types was stable in the third quarter, added the ministry.
MOM found that resident employment had fallen in the food and beverage services and retail trade, which were sectors where non-resident employment grew.
However, the ministry expects the resident employment to pick up in Q4 as businesses typically increase hiring in preparation for the festive season, it said.
The overall unemployment rate declined slightly to 1.8 per cent in September, from 1.9 per cent in August, while the rates for residents and citizens remained unchanged at 2.6 per cent and 2.7 per cent respectively.
The unemployment rates are within the range for non-recessionary periods, added MOM.
The number of retrenchments fell to 2,900 in the third quarter, from 3,270 in the second quarter.
Retrenchments fell or remained stable across sectors, with business reorganisation or restructuring remaining the top reason for retrenchments in the third quarter, said MOM.
The advance estimates show “promising signs for workers and businesses alike”, and the outlook for Singapore’s labour market is “positive”, said NTUC Assistant Secretary-General Desmond Choo in a Facebook post on Monday.
“In particular, I am heartened that the supply of quality job opportunities has increased markedly in growth sectors such as information and communications, professional services, and health and social services.”
In a separate Facebook post, NTUC Assistant Secretary-General Patrick Tay made reference to the National Wages Council’s recommendations earlier this month, adding that employers should closely refer to it when managing workers’ salaries.
In particular, companies should focus “not just lower wage workers but the important broad middle,” he added.
More details of the labour market situation for the third quarter will be released in mid-December, when MOM publishes the full Q3 report with final figures.