Foreign-owned firms make up around 20 per cent of firms in Singapore and provide jobs for nearly one-third of employed residents, the Ministry of Manpower said in a press release on Sep. 17.
Foreign-owned firms also provide jobs for six in 10 residents earning a gross monthly income of above S$12,500 and create business for local small and medium enterprises (SMEs) that hire the majority of resident workers.
The ministry added that Singapore needs to remain open to global talent and attract foreign investments to complement resident workforce growth and continue to create good jobs for Singaporeans.
More statistics on the country's labour market were shared as well — the first time the ministry is doing so, following anxieties about job prospects for locals.
Total employment grew
Total employment grew by 11,300 in the second quarter of 2024, which is more than double the increase in the first quarter.
While non-residents accounted for all the increase, the growth was largely driven by Work Permit holders working in sectors and non-PMET (professionals, managers, entrepreneurs and technicians) roles in which residents are not keen to work.
Meanwhile, resident employment declined marginally by 600.
In the second quarter of 2024, resident employment grew in the outward-oriented sectors, such as financial and insurance services, information and communications and professional services, but saw seasonal declines in retail trade and administrative and support services.
Unemployment and long-term unemployment rates remained low
The overall unemployment rates have trended lower in June 2024 compared to March 2024.
However, the resident long-term unemployment rate in June 2024 remained the same as March 2024 at 0.8 per cent.
Retrenchments also remained low in the second quarter but saw some increases in the financial and insurance services and wholesale trade.
Most firms cited business reorganisation or restructuring as the reason for retrenchment.
Retrenchments due to concerns of recession or downturn in the sector have declined, as local external demand outlook is expected to be resilient for the rest of 2024, the ministry said.
Securing jobs post-retrenchment
Post-retrenchment, more than half of all retrenched residents were able to secure jobs within six months.
Despite that, the resident rate of re-entry dipped from 59.4 per cent in the first quarter to 55 per cent in the second quarter.
Based on the experiences of past retrenched cohorts, the re-entry rate improves significantly with time, the ministry said.
As for the number of job vacancies, it held steady at around 81,2000 in June 2024.
The ratio of job vacancies to unemployed persons increased from 1.56 in March 2024 to 1.67 in June 2024.
The labour market
The labour market has performed well in the first half of 2024, the ministry highlighted.
The ministry said it expects labour market momentum to be sustained, with wages and employment continuing to grow in tandem with economic growth.
In the longer term, resident employment growth is expected to moderate given Singapore’s high labour force participation rate and slowing resident workforce growth.
The ministry emphasised the need to remain open to global talent and attract foreign investments to complement the resident workforce growth.
The government has also updated foreign workforce policies to ensure that businesses hire foreign workers of "good quality" and to attract global talent to Singapore.
This includes the Complementarity Assessment (COMPASS) framework, which took effect in September 2023 for new EP applications and in September 2024 for EP renewals.
COMPASS is a transparent point-based system providing clarity to businesses seeking to hire skilled foreign professionals and gives more points to businesses that have a strong local core, a diverse foreign workforce, or contribute to Singapore's strategic economic priorities.
Top photo from Unsplash