SINGAPORE: Layoffs in Singapore more than doubled in 2023, returning to pre-pandemic levels, according to a recent report from the Ministry of Manpowe
SINGAPORE: Layoffs in Singapore more than doubled in 2023, returning to pre-pandemic levels, according to a recent report from the Ministry of Manpower (MOM). The fourth-quarter Labour Market Report shows that despite relative economic resilience, retrenchment rates climbed to 6.7 per 1,000 employees in 2023, up from just 3.1 per 1,000 employees in 2022. MOM attributes this rise largely to company reorganizations and restructuring.
A March 24 report from DollarsAndSense.sg highlights three key reasons why Singaporeans should be prepared for possible retrenchments in 2024. First, companies increasingly view layoffs as a means of sustainability. Lazada, for example, started 2024 with significant job cuts, joining global tech firms like Amazon, Google, Microsoft, and TikTok in widespread layoffs.
Second, while layoffs have increased, job vacancies declined over much of 2023, except briefly in December. Third, global factors like high interest rates, the rise of AI, and a slowdown in e-commerce have also played a role in job cuts. High interest rates could limit economic growth in 2024, potentially dampening investment in Singapore.
To prepare for potential layoffs, experts advise the following:
Monitor Your Company’s Health: Stay informed on financial targets and any restructuring within your company to spot early warning signs.
Build Emergency Savings: Aim for at least three months of living expenses in emergency funds, accounting for inflation.
Stay Job-Ready: Regularly update your résumé and cover letter to be prepared for job applications.
Expand Your Network: Attend events and meet new contacts; connections are invaluable during job transitions.
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