Singapore saw double the amount of retrenchments in 2023 compared to 2022, from a record-low of 6,440 in 2022 to 14,320 last year, according to the Ministry of Manpower (MOM).
MOM noted business restructuring and reorganisation as the “top reason” for retrenchments in 2023.
However, retrenchments fell between Q3 and Q4 of last year.
Overall, MOM said advance estimates showed retrenchments eased in Q4 2023.
There were 14,320 retrenchments in 2023, the highest its been since 2020 when there were 26,110 retrenchments.
Source: Ministry of Manpower
“Business reorganisation or restructuring remained the top reason for retrenchments in 2023, due in part to the impact of global economic headwinds on outward-oriented sectors such as Wholesale Trade, IT Services and Electronics Manufacturing,” MOM said.
2022 was very much an anomaly for retrenchment statistics as it saw a low of 6,440.
So far, statistics from MOM show that the majority of retrenched workers typically re-enter the workforce within six months post-retrenchment.
They also often enter a different sector, which shows the transferability of their skillsets.
Despite an improvement in business expectations based on MOM surveys as well as MTI indicating improved economic growth prospects in 2024, retrenchments may continue.
“… As downside risks in the global economy remain, business reorganisation or restructuring will continue and may lead to further retrenchments,” MOM said.
That said, more employers are looking to hire — the number grew to 47.7% in Q4 2023 from 42.8% in the previous quarter.
MOM said total employment grew for the ninth consecutive quarter.
But compared to previous quarters, growth was “moderated significantly” overall.
MOM explained that this was “not unexpected as weaker hiring expectations and declining job vacancies from previous quarters indicated cooling labour demand.”
Growth was “moderate” across the full year of 2023 after the post-pandemic rebound in 2022.
Also read: Foodpanda Reportedly Lays Off Staff Across Asia-Pacific 1 Year After Retrenching S’pore Employees
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