Labour Market Report for Singapore, Second Quarter 2023

Executive Summary

1. The labour market continued to grow in the first half of 2023, albeit with signs of cooling labour demand. Total employment rose by 24,300 in the second quarter of 2023, down from 33,000 in the first quarter of 2023. Alongside falling job vacancies, the ratio of job vacancies to unemployed persons fell substantially for the second consecutive quarter, declining from 2.28 in March 2023 to 1.94. Amid a relatively tight labour market, resident unemployment and long‑term resident unemployment stayed low. Retrenchments also fell quarter‑on‑quarter.
   
2. Given the weak external environment and subdued economic growth for the rest of the year, labour demand may cool further across industries unevenly. The Government and tripartite partners will continue to support employers and employees in pursuing business transformation and skills upgrading.
   

Labour Market Review for Second Quarter 2023

Moderating Total Employment Growth

3. Total employment expanded for the seventh consecutive quarter (+24,300) in Q2 2023, though growth slowed compared with Q1 2023 (+33,000). Q2 2023 employment gains were driven mainly by non‑residents (+25,500), while resident employment contracted (−1,200)Ministry o...。
   
4. The increase in non‑resident employment came largely from the construction sector. The contraction in resident employment reflected that robust gains in Community, Social & Personal Services as well as Financial & Insurance Services were offset by declines in Food & Beverage Services and Retail Trade following the end of seasonal hiring.
   

Unemployment Rates Remained Low

5. Unemployment rates stayed low in June 2023 (overall: 1.9%, resident: 2.7%, citizen: 2.8%). The resident long‑term unemployment rate was also low at 0.5% in June 2023Ministry o...。
   

Retrenchments Fell in Q2 2023

6. After rising for three successive quarters, retrenchments dropped from 3,820 in Q1 2023 to 3,200 in Q2 2023. Overall, business reorganisation or restructuring (69.9%) was the top cause of retrenchments. Retrenchments were concentrated in the Information & Communications sector, stemming from corporate restructuring and cost concerns within the industry. Even so, retrenched residents from Information & Communications retained a high likelihood of securing new jobs (69.2%), relative to workers laid‑off from other sectorsMinistry o...。
   

Job Vacancies Declined

7. Labour demand continued to cool. For the fifth quarter running, the number of job vacancies fell to 87,900 in June 2023, down from the peak of 126,000 recorded in March 2022. As at June 2023, growing sectors including Professional Services, Information & Communications and Financial Services accounted for more than one‑fifth of total available job openings.
   
8. With fewer job openings, the job‑vacancy‑to‑unemployed‑person ratio also dropped markedly for the second quarter in a row to 1.94.
   

Labour Market Outlook

9. In August 2023, the Ministry of Trade and Industry (MTI) narrowed Singapore’s 2023 GDP growth forecast range from 0.5%‑2.5% to 0.5%‑1.5%, as external demand prospects for the remainder of the year remained weak. Downside risks persist in the global economy, including higher‑than‑expected inflation in advanced economies that could trigger tighter global financial conditions, as well as risks from an escalation of the war in Ukraine and geopolitical tensions among major global powers.
   
10. Growth prospects across Singapore’s economic sectors will remain uneven for the rest of the year. In particular, externally‑oriented sectors such as Manufacturing and Financial & Insurance Services face subdued outlooks amid lingering weak global conditions. By contrast, aviation‑ and tourism‑related segments including Air Transport and Accommodation, together with consumer‑facing industries like Retail Trade and Food & Beverage Services, hold positive prospects, supported by the ongoing recovery in international air travel and inbound tourism.
    

Conclusion

11. To maintain competitiveness and resilience amid economic uncertainty, the Government encourages employers and employees to make full use of government schemes to adapt to changing conditions. Employers are urged to press ahead with business transformation to sustain enterprise competitiveness and workforce productivity. The Government remains committed to helping local workers secure quality jobs despite an uncertain economic outlook.
    

a. Employers may refer to Jobs Transformation Maps (JTMs) to understand how business and job requirements are shifting in response to industry trends. Sixteen JTMs are currently available on the Workforce Singapore (WSG) website, with three more to be released progressively. JTMs identify key transformative technologies and their impacts on different job roles. Armed with these insights, employers and workers can proactively redesign jobs and build skills required for future workMinistry o...。

b. Employers can also tap Support for Job Redesign under the Productivity Solutions Grant to make roles more productive and appealing to job‑seekersMinistry o...。

c. WSG offers Career Conversion Programmes, which support employers in retraining existing staff for enhanced job roles and up‑skilling mid‑career workers for new positions. Employers may receive subsidies covering up to 90% of salary and course fees.

d. Furthermore, the SGUnited Mid‑Career Pathways Programme opens additional pathways for mature workers. Participants can expand their professional networks and acquire industry‑relevant skills and experience while receiving training allowances of up to S$3,800 per monthLanguage C...。

12. Job‑seekers requiring assistance may reach out to Workforce Singapore (WSG), NTUC’s Employment and Employability Institute (e2i), or any SGUnited Jobs & Skills Centre nationwideMinistry o...。
    

For More Information

13. The Labour Market Report for the Second Quarter 2023 is published by the Manpower Research and Statistics Department, Ministry of Manpower. The full report and technical notes for various indicators can be accessed at http://stats.mom.gov.sg/Pages/Home.aspxMinistry o...