Singapore job market in Q2 2024: Retrenchments rise, but employment doubles
The second quarter of 2024 saw an interesting mix of trends in the Singapore job market.
While retrenchment was up compared to the first quarter, total employment also saw significant growth, showing resilience despite challenges.
Let’s break it down.
An uptick, but still lower than 2023
In the second quarter of 2024, 3,270 people were retrenched, a slight increase from the 3,030 in Q1. However, it’s worth noting that this number is still lower than the 3,820 retrenchments recorded in the first quarter of 2023, Mothership reported.
This rise was expected, with some major multinational companies (MNCs) like Dyson making the news for layoffs. On October 1, Dyson let go of workers in Singapore, citing internal reasons.
Despite this, Dyson managed to stay within legal requirements, informing the Ministry of Manpower (MOM) within the five-day notice period, although unions felt the communication could have been better.
Not only that, according to a Bloomberg report, Samsung also started a retrenchment exercise on October 1.
Still, even with more retrenchments this quarter, a positive sign emerged—more than half of those retrenched were able to secure jobs within six months. That’s a silver lining for many workers who are quickly bouncing back into the workforce.
Even as retrenchments edged up, total employment in Singapore grew by a solid 11,300 in the second quarter of 2024. This is more than double the employment growth seen in Q1, which only added 4,700 jobs.
It’s clear that while some companies are downsizing, others are expanding and hiring, driving overall job creation.
Why are companies retrenching?
So, why are some companies retrenching while others are hiring? Mothership reported that according to Deputy Prime Minister (DPM) and Minister for Trade and Industry Gan Kim Yong, several factors contribute to these retrenchments.
Market dynamics play a big role—when certain products or services aren’t performing well, companies have to make tough decisions, said DPM Gan in a written reply.
On top of that, MNCs often restructure globally, which can lead to downsizing in certain regions, including Singapore.
In these situations, the government works closely with both companies and unions to support retrenched workers, offering skills training and helping them find new job opportunities. The quick reemployment of many retrenched workers shows that these measures are working.
Singapore’s investment appeal remains strong
Despite the retrenchments, Singapore is still an attractive destination for foreign investments.
According to the Mothership article, the Economic Development Board (EDB) has already secured S$5.4 billion in fixed asset investment (FAI) commitments in the first half of 2024. These investments, which include capital going into new facilities, machinery, and infrastructure, are expected to provide long-term job opportunities.
Big names like Amazon Web Services (AWS) are planning further investments. AWS will inject an additional S$12 billion into cloud infrastructure projects over the next four years.
Meanwhile, pharmaceutical giant AstraZeneca is setting up a massive S$2 billion facility to produce cutting-edge antibody-drug conjugates. These investments will not only create jobs but also position Singapore as a hub for innovation in tech and pharma.
Foreign-owned companies remain a significant part of Singapore’s economy. Although they make up only about 20% of all firms, they provide nearly a third of the jobs for residents.
They are also key players when it comes to high-paying positions, with around 60% of locals earning more than S$12,500 a month working for these companies.
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While retrenchments are never easy, the bigger picture is promising. Employment is growing and foreign investments are flowing into Singapore, creating opportunities for locals.
With continued government support, workers who do face retrenchment can look forward to bouncing back and landing on their feet. And with major investments on the horizon, Singapore’s economy seems well-poised for future growth, even amid global uncertainties.
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