“Nearly Half of Singapore Companies Still Hiring as Labour Demand Stays High: Report “

SINGAPORE: The demand for talent in Singapore remains robust as businesses continue to recruit, fueled by a strengthening economic outlook. Recent data from Nomura’s Labour Market Conditions Indicator (LMCI) for Singapore shows a sharp rise in hiring activity in the first quarter of 2024, signaling a rebound after a period of slowdown.

This hiring surge is reflected in Ministry of Manpower (MOM) data, revealing that 50.7% of companies plan to expand their workforce, up from 47.7% in the previous quarter. With average monthly wages now above pre-pandemic levels, economists point to strong wage growth driven by sustained labour demand.

While the job vacancy-to-unemployment ratio dipped slightly from 1.7% to 1.6%, it remains above 1%, indicating that available positions still outnumber job seekers. Vacancies have continued to rise for the second straight quarter, reinforcing optimism about business growth.

The first quarter also saw fewer layoffs, with retrenchments dropping from 3,460 to 3,030, suggesting greater job stability. Employment rose by 4,700 individuals, although unemployment edged slightly higher to 2.1% in March, as the market adjusts.

Analysts predict that rising wages, combined with continued strong demand for labour, could maintain inflationary pressure, keeping core inflation elevated in the short term.