MOM: Fewer companies in S’pore intend to increase wages and hire in Q4 2024

Fewer companies intend to raise wages in the next three months, according to advance labour market estimates released by the Manpower Ministry (MOM) on October 29.

The percentage of companies that plan to raise wages in Q4 fell to 15.6%, from 28.6% for the third quarter.

Meanwhile, the intention to hire has also fallen for this fourth quarter, going from 49.4% to 43.2%.

“As global economic risks such as heightened geopolitical tensions and trade conflicts persist, firms are likely to prioritise maintaining current operations over expansion or wage increases,” MOM said, according to an article by CNA.

An expanding labour market overall

Overall, advance estimates indicate an expanding labour market in Q3 2024, with low levels of unemployment and retrenchments.

This outlook is supported by the anticipated year-end hiring for the festive season and the positive economic outlook from the revised GDP growth forecast.  

“While there was a decline in hiring and wage expectations among companies for Q4 2024—reflecting ongoing uncertainty in export-oriented sectors—we expect employment to continue to expand in the next quarter, and the labour market to remain tight,” they said.

A tight labour market means a relatively low unemployment rate and a scarcity of available workers to fill job openings.

Desmond Choo, NTUC Assistant Secretary-General, posted to Facebook on Tuesday that these advance estimates show “promising signs for workers and businesses alike”.

In the labour market advance release, the MOM also encouraged employers and workers to “press on with transformation” to remain “competitive and resilient amid prevailing economic and global uncertainties”.

The Ministry also shared that programmes are available to support both employers and workers.

For one, Workforce Singapore (WSG) has worked with sector agencies to launch 17 Job Transformation Maps (JTMs) which provide actionable insights on the impact of technology and automation on businesses and jobs.

Workers can also make use of the CareersFinder feature on WSG’s MyCareersFuture job portal, which harnesses data and artificial intelligence, to explore career options that make use of their skills and experience, and pathways to reach their career goals.

There’s also the Career Conversion Programmes (CCPs), which support mid-career workers in undergoing industry-recognised training.

The Labour Market Report Third Quarter 2024 is set to be released in mid-December 2024, and will provide a comprehensive assessment and more details of the labour market situation in Q3 2024.

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