2022 in a nutshell

2022 has been such a whirlwind year, full of ups and downs! There have been several unsettling macroeconomic events such as Russia’s invasion of Ukraine on 24 February 2022, not to mention the US Federal Reserve aggressively raising its benchmark interest rate to combat inflation. Whispers of a looming economic recession have been spreading, sparked by the numerous layoffs conducted by multinational corporations and startups.

On a more positive note, the Singapore government finally relaxed on pandemic-related restrictions this April. Singapore reopened her borders—and this led to a resurgence of air travel and tourism. After two years of safe distancing measures and vaccination-differentiated policies during Covid-19, we are slowly transitioning into the new normal.

Key employment trends in 2022

What does the new normal in the workplace mean for you? Employees in Singapore have gotten used to remote work and experienced its benefits firsthand. As the world has gotten used to working remotely, it is fast becoming the norm for companies to offer a hybrid work model. Requests for flexible work arrangements have been on the rise as well.

Furthermore, attitudes towards work and career have shifted post-pandemic, as reflected in a survey Reeracoen conducted in partnership with Rakuten Insight Global. The survey shows that the three demographics of employees in Singapore—Gen Z (ages 18-25), Millennial (ages 26-41) and Gen X (ages 42-57)—have diverging priorities.

Gen Xers place "Work-life Balance" as their top priority, as compared to the Gen Zs who prioritise income over free time. Meanwhile, millennials place equal emphasis on both "Income" and "Work-Life Balance”. The survey results provide more nuance to the ongoing work-life balance debate: Gen Zs desire to work hard and climb the corporate ladder, even if they may have to pull many late nights in the office.

More broadly speaking, the resident labour force has grown since 2021, with the unemployment rate falling over the year for both Professionals, Managers, Executives, and Technicians (PMETs) and non-PMETs. According to the Ministry of Manpower (MOM), Singapore’s real median income growth jumped from 0.9% in 2021 to 2.1% in 2022. This signals that despite high inflation, income growth has held up well.

Therefore, these statistics released by MOM paint an optimistic picture of Singapore’s sustained economic recovery. Technology has been fueling this year’s employment growth, with the most in-demand jobs closely intertwined with digital transformation. The top 5 most in-demand occupations locally in 2022 are as follows: Artificial Intelligence Developer, Business Analyst, Digital Marketer, Data Scientist and Cyber Security Specialist.

A positive outlook on 2023

As we look forward to 2023, technology will keep its dominance in the local employment market. Digitalisation is a tidal wave of opportunity; it is all the more crucial for you to seriously consider upskilling digitally. You need to be adept at digital technologies so that you will not be left behind in the workplace.

In conclusion, we gradually see a shift from pandemic-related anxieties to money concerns, with cost of living looming large on the minds of employees in Singapore. This is particularly so in light of consistent supply chain issues and the GST hike to 8% starting from 1 January 2023.

Nonetheless, economic indicators such as Singapore’s gross domestic product (GDP) growth remain healthy—a 2.5 per cent GDP growth is forecasted in 2023. We still maintain a favourable outlook on the new year ahead!

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