According to the most recent labour market data published by Singapore’s Ministry of Manpower (MOM), over one-third of companies there are planning to raise pay in Q1 of 2024.
According to the research, a survey carried out in December 2023 revealed that approximately 32.6% of firms intended to increase pay in the first three months of 2024. Compared to the previous low of 18% recorded in September 2023, this indicates an increase.
Furthermore, MOM’s data highlighted a positive trend, showing that 47.7% of the questioned firms planned to hire during the same period—a rise from 42.8% in September of last year.
The optimistic prognosis is consistent with the Ministry of Trade and Industry’s improved business sentiment projection, which points to better chances for economic development in 2024. But MOM expects more corporate reorganisations and restructuring in the face of ongoing global challenges, which could result in more layoffs.
The paper claims that Singapore had a sharp increase in layoffs in 2023—more than tripling from the year before. The numbers shot up to 14,590 in 2023 from a record low of 6,440 in 2022, almost exactly matching pre-pandemic levels.
The total number of layoffs was in line with pre-pandemic averages, but 2023 saw more organisations implement layoffs than the pre-pandemic average. Concerns over middle-aged workers were brought up in the report, especially for professionals, managers, executives, and technicians (PMETs), who were at higher risk of being laid off.
The National Trades Union Congress’s (NTUC) Assistant Secretary-General, Patrick Tay, praised government initiatives like the S$4,000 (US$2,991) SkillsFuture top-up scheme and enhanced subsidiaries for mid-career employees, emphasising the value of upskilling and training to improve employability among affected employees.
In light of the uncertain global environment, MOM reiterated its resolve to work with Singaporeans to maintain economic competitiveness and create greater job prospects. According to CNA, Tay reiterated the concerns expressed, calling for more organised career advancement models and higher compensation to draw more Singaporeans into important industries.
