Singapore’s labour market rebounded in 2024 — a welcome recovery after the previous year’s decline. Alongside positive trends like rising resident employment and growing job vacancies, underlying shifts are reshaping the hiring landscape.

At Reeracoen, we work with companies and professionals across the region. Based on the latest data from the Ministry of Manpower (MOM), here’s a breakdown of the key employment trends — and what they mean for workforce planning and job searches in 2025.

Key Labour Market Highlights from 2024

Indicator	Q4 2024	Comparison
Total employment growth	+44,500	Down from +78,800 in 2023
Resident employment growth	+8,800	Up from –4,600 in 2023
Non-resident employment growth	+35,700	Down from +83,500 in 2023

 

Indicator	Q4 2024	Comparison
Job vacancies (Dec 2024)	77,500	Up from 61,500 in Sept 2024
Unemployment rate	1.9% overall	Stable
Retrenchments (Q4)	3,680	Up from 3,050 in Q3
Re-entry rate (post-retrenchment, 6 months)	58.1%	Down from 60.4% in Q3

 

Resident Employment Rebounds, Especially in High-Skill Roles

After a dip in 2023, resident employment rose by 8,800 in 2024, particularly in knowledge-based sectors.

Sector	Net Increase in Resident Employment
Financial & Insurance Services	+5,300
Health & Social Work	+5,200
Professional Services	+5,000
Information & Communications	+4,200

 

Conversely, lower-skilled sectors saw declines:

• Food & Beverage: –2,100
• Admin & Support Services: –700

This signals a shift toward a more skills-based economy. Jobseekers can benefit by upskilling in finance, digital, and healthcare sectors. For employers, this means intensified competition for PMETs (Professionals, Managers, Executives and Technicians), making employer branding and retention strategies more crucial than ever.

Job Vacancies Surge, but Retrenchments Also Rise

There were 77,500 job openings in December 2024, up significantly from 61,500 in September. Around 70% of these roles were intended for residents, such as:

• Financial analysts and advisers
• Software and multimedia developers
• Management consultants
• Sales and business development professionals

However, retrenchments rose to 3,680 in Q4, particularly in the financial and insurance sectors, which accounted for 620 retrenchments due to cost management.

This dual trend suggests companies are restructuring, not downsizing wholesale. Many are cutting operational costs while hiring strategically for future-facing roles.

Foreign Workforce Growth Slows Amid Policy Adjustments

Non-resident employment rose by 35,700 — significantly lower than 2023’s 83,500. This was largely due to:

• Growth in work permit holders (+39,300), mainly in construction and manufacturing
• Stabilisation in Employment Pass (EP) and S Pass holders, as firms adjusted to COMPASS and updated salary criteria

For employers, this highlights the need for a more agile, localised workforce strategy. Talent acquisition now demands careful planning to balance compliance with productivity.

Unemployment Stable, but Re-Entry Slows

Unemployment remained low:

• Overall: 1.9%
• Residents: 2.8%
• Citizens: 2.9%
• Long-term unemployment rate: 0.8%

While these figures are encouraging, the re-entry rate into employment within six months of retrenchment declined slightly to 58.1%.

This may reflect positive behaviour, with more individuals pursuing reskilling or holding out for roles with better alignment and pay. Notably, data shows that re-entry typically improves by the 12-month mark.

2025 Outlook: Cautious Optimism Ahead

• 46.3% of firms plan to hire in Q1 2025 (up from 43.2% in Q3 2024)
• 31.6% intend to raise wages (up from 15.6%)
• The vacancy-to-unemployed person ratio stands at 1.64, indicating continued tightness in the labour market

While global trade frictions and macroeconomic uncertainties remain, businesses are showing confidence in expanding headcount and salaries — particularly in high-growth sectors.

What Employers Should Do

• Plan ahead: Align workforce strategies with sector-specific shifts and demand
• Review compensation: Competitive salary and growth opportunities are key differentiators
• Build a talent pipeline: Identify emerging talent early, especially in PMET roles
• Work with strategic recruitment partners: Agencies like Reeracoen offer market intelligence, screening precision, and access to qualified talent pools

What Jobseekers Should Focus On

• Target industries with strong growth forecasts (tech, finance, health)
• Invest in certifications and digital skills
• Strengthen personal branding, especially on platforms like LinkedIn
• Be open to contract roles or cross-functional positions as stepping stones

Final Thought from Reeracoen

Singapore’s labour market is evolving — not just recovering. Whether you are building your workforce or rethinking your career strategy, 2025 offers both challenges and opportunities.

Let’s move forward with clarity, confidence, and connection.

 

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References & Further Reading

1. Labour Market Advance Release – Fourth Quarter 2024

2. Report: Labour Market Fourth Quarter 2024

3. Channel News Asia – More Residents Found High-Skilled Jobs in 2024

4. The Straits Times – Labour Market Expands in 2024

5. Singapore Business Review - Labour market expands in 2024: MoM

6. Business Times - Singapore’s retrenchments grow in Q4, but job vacancies also rise

7. Reeracoen – Talent & Hiring Trends

8. S’pore’s resident employment grows by 8,800 in 2024: MOM