SINGAPORE: Fewer companies have signaled their intention to hire or increase salaries over the next three months, according to preliminary labor market estimates released on Tuesday (Oct 29) by the Ministry of Manpower (MOM ).

The percentage of companies intending to hire in the fourth quarter of 2024 fell to 43.2 percent, compared to 49.4 percent in the third quarter of 2024.

Likewise, the percentage of companies planning to raise wages in the fourth quarter fell to 15.6 percent, compared to 28.6 percent in the third quarter.

“As global economic risks such as heightened geopolitical tensions and trade conflicts persist, businesses will likely prioritize maintaining their current operations over expanding or increasing wages,” he said. declared MOM.

“Nevertheless, given the year-end hiring expected for the holiday season and the positive economic outlook stemming from revised GDP growth forecasts, we expect employment to continue to increase in the next quarter and the labor market remains tight.”

A tight job market means relatively low unemployment and a shortage of workers available to fill vacant positions.

Preliminary data showed that total employment, excluding migrant domestic workers, increased by 24,100 in the third quarter of the year, more than double the growth of 11,300 in the second quarter.

Resident employment continued to increase in growing sectors such as information and communications, professional services, and health and social services, indicating a steady supply of quality jobs and prospects for favorable employment conditions for resident workers, MOM said.

Non-resident employment also increased in the third quarter, with the majority coming from work permit holders in non-PMET positions in construction and manufacturing, as in the second quarter.

“These positions are generally less sought after by residents, or there may be a limited pool of local candidates available. As a result, companies are looking to tap WPHs (work permit holders) to meet their staffing needs,” MOM said.

Employment among higher-skilled pass types remained stable in the third quarter, the ministry added.

MOM found that resident employment declined in food services and retail, which were sectors where non-resident employment increased.

However, the ministry expects resident employment to pick up in the fourth quarter as companies typically increase hiring in anticipation of the holiday season, it said.

The overall unemployment rate fell slightly to 1.8 percent in September, from 1.9 percent in August, while rates for residents and citizens remained unchanged at 2.6 percent and 2.7 percent. hundred respectively.

Unemployment rates are within the range of non-recessionary periods, MOM added.

The number of layoffs fell to 2,900 in the third quarter, compared to 3,270 in the second quarter.

Layoffs declined or remained stable across all sectors, with company reorganization or restructuring remaining the main reason for layoffs in the third quarter, MOM said.

More details on the labor market situation for the third quarter will be released in mid-December, when the MOM releases the full third quarter report with final figures.