The Ministry of Manpower recommends that employers invest in upskilling and human capital management to keep up with employment demand as the country’s workforce ages.
By Maggie Mancini
Nearly half (46%) of Singaporean companies plan to hire in early 2025, while 32% of organisations intend to raise wages, according to research from the Ministry of Manpower. The report finds that given the sustained uncertainty in the global economy, employers and workers should continue to invest in upskilling to adapt to changes in the world of work.
Layoffs rose in the fourth quarter of 2024, though dropped year-over-year compared to 2023. The report attributes the layoffs primarily to corporate restructuring.
Employment growth for both Singaporean residents and non-residents was slower in the fourth quarter of 2024 compared to the third quarter. As a result, total employment slowed, though it was still higher compared to 2023. Residential employment continued to grow in higher-skilled sectors like professional services, financial services, and health and social services. The increase in non-residential employment was concentrated in the construction sector, driven by hiring for lower-skilled jobs held by work permit holders.
Unemployment rates for residents and citizens rose slightly from September to October 2024, but held steady in November and December, remaining unchanged at 1.9%. This rate remained relatively stable and low throughout the year.
Given the ageing of the Singaporean workforce, the report suggests that employers should maximise the potential of their existing employees by investing in human capital management and remain open to foreign investments and global talent to generate more opportunities for local businesses.
