Layoffs in Singapore declined for the first time in a year, while overall labour demand showed signs of cooling in Q2 2023 as total employment growth slowed markedly to 23,700.
In another sign of a softening labour market, there were fewer employed residents – comprising Singaporeans and permanent residents – for the first time since Q2 2020, according to preliminary labour numbers released by the Ministry of Manpower (MOM) on Thursday.
But resident employment remained well above pre-pandemic levels recorded in December 2019, MOM said.
“The contraction occurred mainly in food and beverage services (F&B) and retail trade, which is not unusual in the first half of the year,” it said.
“F&B and retail outlets typically increase hiring of temporary staff in the Q4 to cater for year-end festivities, and reduce their number of staff in subsequent quarters, with the easing of consumer demand.”
In contrast, there were more non-resident workers, especially in the construction sector. This comes amid sustained demand for private and public sector projects, such as housing, the ministry added.
Employment in the construction sector grew by 10,500 in Q2 2023, picking up the pace from Q1. This is mainly attributed to more work permit holders.
Sectors such as community, social and personal services, financial services, and professional services saw continued resident employment growth, although growth has slowed amid global economic headwinds, said MOM.
Employment in the services sector, excluding migrant domestic workers, slowed for the third consecutive quarter, growing by 12,400 workers.
Meanwhile, retrenchments declined from 3,820 in Q1 2023 to 3,200 inQ2, which the ministry said was “similar to the non-recessionary range observed in 2019, pre-pandemic”.
Business reorganisation or restructuring was the top reason for retrenchments in the second quarter, it said, adding that the services sector, especially information technology and wholesale trade, were the key contributors. Retrenchments in the services sector rose for the fourth consecutive quarter to 2,400.
However, MOM said retrenchments in manufacturing declined, following larger-scale sectoral retrenchments in Q1 2023 and Q4 2022 – 1,470 and 1,180 workers respectively.
The Straits Times
