2023 Retrenchment Surge According To MOM Singapore
Retrenchments in Singapore soared in 2023, more than doubling the figures from the previous year, according to advanced labor market estimates released by the Ministry of Manpower (MOM). The number of retrenchments in 2023 reached a staggering 14,320. This figure is a significant increase from the 6,440 recorded in the preceding year.
Q4 saw 3,200 job cuts in Singapore compared to 4,110 in the third quarter. Despite this, the overall trend highlighted challenges faced by various sectors. The wholesale trade sector’s retrenchment decline played a pivotal role in this reduction, as per MOM.
The ministry attributed the surge in retrenchments to business reorganization or restructuring, primarily driven by the impact of global economic headwinds on outward-oriented sectors, including wholesale trade, IT services, and electronics manufacturing. Nevertheless, MOM pointed out that statistics on re-entry into the workforce. These statistics indicated that most retrenched employees in Singapore typically found new opportunities within six months post-retrenchment, often in different sectors. This showcases the transferability of their skill sets.
In terms of employment, the final quarter of 2023 saw an increase of 8,400 jobs, marking the ninth consecutive quarter of growth. However, MOM emphasized a significant moderation in total employment growth. This moderation was due to weaker hiring expectations and declining job vacancies, indicating a cooling labor demand.
MOM optimistic on 2024, expect less retrenchment
For 2024, MOM expressed optimism based on surveys indicating an improvement in business expectations. However, the report also cautioned about potential downsides in the global economy. Furthermore, it suggested that Singapore business reorganization or restructuring might lead to further retrenchments. Inadvertently, this action would cause and unemployment rates to edge up.
In summary, retrenchments surged in Singapore during 2023, with a sharp increase in the number of job cuts compared to the previous year. Despite this, the majority of retrenched workers managed to find new employment opportunities within six months, showcasing the adaptability of their skills. The labor market also saw a moderation in employment growth in the final quarter of 2023, signaling potential challenges ahead. MOM remains cautiously optimistic about 2024 but acknowledges the uncertainties in the global economic landscape.
