Retrenchments up in Q3, but employment landscape for residents 'healthy', says MOM

Retrenchments in Singapore rose in the third quarter of 2023 given the weaker economic outlook but this comes alongside labour market expansion and an increase in total employment. 

According to advance labour market estimates released by the Ministry of Manpower (MOM) on Thursday (Oct 26), a total of 4,100 people were retrenched in the third quarter of 2023, as compared to 3,200 in the previous quarter.

Most of these retrenchments took place in the wholesale trade sector.

However, total employment has gone up for the eighth consecutive quarter to 24,000, comparable to the previous quarter. 

The ministry added that the employment landscape for resident "remains healthy", and that there is still steady growth in typically high-paying sectors including financial services and professional services. 

And while the labour market continued to expand, the pace of employment growth has slowed compared to a year ago, amid the global economic slowdown and with business expectations worsening in Q3.

The proportion of firms that expressed intention to hire within the next three months have dipped from 58.2 per cent to 42.8 per cent.

Firms intending to raise wages have similarly fallen from 28 per cent to 18 per cent, said the ministry. 

Given this, employers and workers are encouraged to "make full use" of available programmes to "remain competitive and resilient amid economic uncertainty", said MOM. 

"We encourage employers to press on with business transformation, upskill and reskill their workers, and adapt to the changing environment," said the ministry. 

Retrenched workers to be provided with temporary financial support

This is in line with Prime Minister Lee Hsien Loong's National Day Rally speech in August, where he said that the government will provide retrenched workers with temporary financial support to focus on upskilling and re-employment, the Straits Times reported.

"It will be a temporary safety net to help you meet immediate needs to free you to upskill and train, as you prepare yourself for a good long-term job," Lee said.

"So long as you are willing to make the effort, the government will go the extra mile to help you."

Details of the scheme are to be shared later this year.

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khooyihang@asiaone.com