According to the Ministry of Manpower (MOM), Singapore’s labour market expanded in 2024 on the back of strong economic performance and positive business sentiments, with total employment increasing by 44,500.
However, while resident employment rose by 8,800—reversing a decline in 2023—non-residents accounted for the majority of job growth, with 35,700 new jobs.
This trend has sparked ongoing concerns about the distribution of employment opportunities between Singapore citizens and permanent residents (PRs), as MOM’s resident employment figures do not differentiate between the two groups.
Labour market remains tight, job vacancies increase
Singapore’s labour market remained tight in the fourth quarter of 2024, with 1.64 job vacancies for every unemployed person in December.
Job vacancies increased from 61,500 in September to 77,500 in December, with about 70% of these positions typically filled by residents.
Unemployment rates remained stable, with overall unemployment at 1.9% in December 2024.
Resident and citizen unemployment stood at 2.8% and 2.9%, respectively, while the resident long-term unemployment rate was 0.8%.
Despite tight labour conditions, retrenchments rose in Q4 2024, increasing from 3,050 in Q3 to 3,680 in Q4.
The financial and insurance sector saw the largest increase in layoffs, rising from 270 to 620 due to higher operational costs.
However, total retrenchments in 2024 were lower than in 2023, with 13,020 job losses compared to 14,590 the previous year.
The rate of re-employment among retrenched residents within six months fell slightly, from 60.4% in Q3 2024 to 58.1% in Q4 2024, indicating possible challenges in job transitions.
Foreign employment continues to dominate job growth
While total employment growth slowed compared to 2023, a significant portion of new jobs in 2024 continued to go to non-residents.
Work Permit holders made up most of the non-resident employment increase (39,400), particularly in blue-collar jobs.
Employment Pass (EP) and S Pass holders remained stable following prior increases in 2022 and 2023, as companies adjusted to new salary requirements and the COMPASS framework.
The Ministry of Manpower (MOM) stated, “The number of Employment Pass and S Pass holders was broadly stable following significant increases in the past two years, as companies adjust to COMPASS and the higher qualifying salary requirements.”
However, this stability may be partly due to the government granting PR status to EP and S Pass holders, allowing them to shift from non-resident to resident status.
Since MOM groups PRs together with citizens under “resident employment,” this could explain why EP and S Pass numbers appear unchanged while total resident employment increased.
Without a clear breakdown of how many new PRs were previously EP or S Pass holders, it remains uncertain whether these trends indicate real job creation for Singaporeans or merely a reclassification of foreign talent into the resident workforce.
Three-Year Employment Trends: Foreign Workers Took Over 90% of New Jobs
Between January 2022 and December 2024, 91.4% of Singapore’s total employment growth—320,800 out of 351,100 jobs—was attributed to non-residents.
Even with the increase in resident employment in 2024, non-residents continued to account for the vast majority of new jobs over the past three years.
Despite this, MOM has declined to provide a breakdown of PR and Singapore citizen employment figures, making it unclear how many of the remaining 8.6% of jobs truly benefited Singapore-born workers.
This concern is further complicated by the fact that Singapore granted 35,000 new PRs in 2024—far exceeding the total resident employment growth of just 8,800. It also granted about 24,000 new citizenships, including 1,400 to children born overseas to Singaporean parents in the same year.
While this does not necessarily mean that PRs faced job losses, it raises questions about whether the resident employment growth was sufficient to accommodate both new PRs and existing residents.
Without a clearer breakdown from MOM, it remains difficult to assess the full impact of these trends on Singapore’s job market.
Government workforce initiatives and policy outlook
Singapore’s economy is projected to grow by 1.0% to 3.0% in 2025, slower than the 4.4% growth in 2024.
While employment expansion is expected to continue in early 2025, trade tensions and inflationary pressures may dampen hiring later in the year.
To support workforce transformation, several initiatives have been introduced:
- Job Transformation Maps (JTMs): Workforce Singapore (WSG) has launched 17 JTMs to help businesses understand how technology affects jobs.
- SkillsFuture Workforce Development Grant (WDG): Announced in Budget 2025, WDG consolidates workforce transformation schemes and simplifies application processes.
- Job Redesign Initiatives: Employers can use the Productivity Solutions Grant (PSG-JR) to redesign jobs for increased productivity.
- Career Guidance and Skills Development: Workers can access career coaching and SkillsFuture Credit-supported services.
- Overseas Career Opportunities: The government is expanding international work opportunities for Singaporean professionals, doubling the capacity of overseas leadership and work programmes from 400 to over 700 participants annually.
Parliament debate over employment data transparency
During the Committee of Supply debate on the Ministry of Manpower’s budget on 7 March, Progress Singapore Party NCMP Leong Mun Wai pressed for greater transparency in employment data, specifically requesting a breakdown of job growth between Singapore citizens and PRs.
Leong asked whether MOM tracks the number of work pass holders who later became PRs and are then classified under “resident employment” statistics.
He argued that without this data, it is impossible to determine if local-born Singaporean PMETs have been displaced or underemployed due to employment trends favouring foreign talent.
In response, Manpower Minister Tan See Leng stated that 63% of the past decade’s PMET job growth went to local-born Singaporeans.
However, just a day earlier, he had acknowledged that one-third of this figure was due to job reclassification rather than actual job creation.
Despite Leong’s repeated questioning, Minister Tan declined to provide a detailed breakdown of employment figures separating citizens from PRs.
He instead dismissed further discussion with a well-known Cantonese phrase, implying that the matter had been adequately addressed. Leong was unable to respond further as the debate’s allocated time ended.
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