Singapore’s employment growth in the second quarter of this year has slowed down compared to the previous quarter, indicating a cooling labor demand, according to the Ministry of Manpower. Revised data released by the ministry reveals that total employment, excluding migrant domestic workers, increased by 24,300 in the April-June period. This figure is slightly higher than the previously estimated growth of 23,700 but lower than the first quarter’s increase of 33,000.
The ministry stated, “Given the weak external environment and economic growth for the rest of the year, labor demand could ease further and be uneven across industries.” To address this situation, it added, “The government and tripartite partners will continue to support employers and workers to press on with business transformation and upskilling.”
The cooling labor demand is evident as the number of job vacancies declined for the fifth consecutive quarter, reaching 87,900 in the April-June period. This is a significant drop from the peak of 126,000 vacancies in March 2022. Consequently, the ratio of job vacancies to unemployed persons decreased from 2.28 in the first quarter to 1.94 in the second quarter, according to the data.
Furthermore, Singapore’s overall unemployment rate rose slightly to 2.0% in July from 1.9% in June. The unemployment rate for residents also increased from 2.7% in June to 2.8% in July, while the unemployment rate for citizens rose from 2.8% to 2.9% during the same period.
It is crucial for businesses and workers to adapt and transform given the current circumstances. The ministry’s continuous support, along with efforts from the government and tripartite partners, aims to navigate the challenges and help maintain a resilient workforce in Singapore.
