INFORMATION AND COMMUNICATIONS SECTOR
Retrenchments in 2023 were mainly in outward-oriented services sectors such as wholesale trade, information and communications, professional services, financial services, and electronics manufacturing, reflecting their exposure to global economic headwinds.
The electronics manufacturing sector saw the highest incidence of retrenchment last year, at 27.5 per 1,000 employees, followed by the information and communications sector at a rate of 24.9 per 1,000 workers.
The majority of retrenchments in the information and communications sector were due to reorganisation or restructuring, as firms “rationalised their manpower after the surge in hiring in previous years”.
“These firms could also be restructuring their operations to focus on new and longer-term growth areas, as vacancies remained high in the sector,” said MOM in its report.
Workers retrenched from the information and communications sector had one of the highest re-entry rates, at 70.3 per cent.
TOTAL EMPLOYMENT
Total employment grew by 88,400 in 2023, with the increase largely driven by non-residents, especially in the construction and manufacturing sectors, MOM said. Resident employment growth was mainly in financial services and professional services.
In the fourth quarter of 2023, total employment expanded for the ninth consecutive quarter by about 7,500, with the vast majority being non-residents.
This increase has “moderated significantly” from the 23,600 in the third quarter of 2023.
“The moderation was not unexpected as weaker hiring expectations and declining job vacancies from previous quarters indicated cooling labour demand,” MOM said.
Unemployment rates remained stable and low in December 2023, with the overall unemployment rate at 2 per cent, the resident rate at 2.8 per cent and the citizen rate at 2.9 per cent.
“Amid global economic uncertainties, MOM will work hand-in-hand with Singaporeans to sustain economic competitiveness and help workers take on better jobs,” said the ministry.
