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Singapore retrenchments down after 3 quarters of increase: MOM
This is the first decline in retrenchments in Singapore after rising consecutively over the past three quarters.
SINGAPORE — The number of retrenchments in the second quarter of 2023 declined for the first time after rising over the past three quarters, based on the advance labour estimates released on Thursday (27 July).
According to the Ministry of Manpower's (MOM) Labour Market Advance Release for the second quarter of 2023, second-quarter retrenchments for 2023 fell to 3,200, from 3,820 in the first quarter. The numbers were similar to the non-recessionary range observed before the COVID-19 pandemic when quarterly retrenchments ranged from 2,320 to 3,230 in 2019.
According to MOM, business reorganisation or restructuring was the top reason for retrenchments in the second quarter. The services sector, especially IT services and wholesale trade, was the main contributor to retrenchments compared to other sectors.
Overall, the number of retrenchments in the remaining sectors declined or stayed broadly stable. This included the decline in retrenchments in the manufacturing sector, which saw larger-scale retrenchments in the sector during the first quarter of 2023 and the fourth quarter of 2022.
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Total employment expanded moderately
Preliminary data showed that total employment (excluding migrant domestic workers) expanded for the seventh consecutive quarter by 23,700 in the second quarter of 2023, but at a significantly slower pace compared to previous quarters.
The growth in employment was driven mainly by non-residents in the construction sector amid sustained demand for private and public sector projects, such as housing.
On the other hand, resident employment contracted slightly in the second quarter of 2023, although resident employment still remained above its pre-pandemic level in December 2019. The contraction occurred mainly in food and beverage services (F&B) and retail trade.
According to MOM, this is not unusual in the first half of the year, as F&B and retail outlets typically increase their hiring of temporary staff in the fourth quarter to cater for year-end festivities and reduce their number of staff in subsequent quarters, with the easing of consumer demand.
Meanwhile, sectors such as community, social and personal services, financial services and professional services saw continued resident employment growth, although growth has slowed amid global economic headwinds.
The full labour market report for the second quarter of 2023 is slated to be released in mid-September 2023.
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