By Ronnie Harui

SINGAPORE--Singapore's employment increased for a ninth straight quarter, but slowed significantly from prior quarters, notching only moderate growth for the full year amid weaker economic conditions.

Total employment, excluding migrant domestic workers, grew by 8,400 in the fourth quarter of 2023, advance estimates from the Ministry of Manpower showed Wednesday. That compared with the rise of 23,600 seen in the third quarter.

For 2023 as a whole, total employment growth moderated to 89,400 from 227,800 in 2022, the data showed.

"The more muted pace of growth was seen for both residents and non-residents," the ministry said.

The moderation in growth wasn't a surprise, as weaker hiring expectations and falling job vacancies during previous quarters foreshadowed cooling labor demand, the ministry said.

The number of retrenchments dropped to 3,200 in the fourth quarter from 4,110 in the third quarter, when there was a surge in wholesale trade retrenchments, the ministry said. For the year, retrenchments rose to 14,320 from a record-low 6,440 in 2022, the data showed.

The ministry said unemployment in general was stable and low in 2023 amid a tight labor market. The overall unemployment rate came in at 1.9% for the year.

Singapore's overall unemployment rate stayed at 2.0% in December, unchanged from November. The rates of unemployment among residents and citizens were also unchanged in the final month of 2023, remaining at 2.8% and 2.9% respectively, the data showed.

The ministry added that its surveys suggest an improvement in business expectations.

"The proportion of firms which indicated an intention to hire in the next three months rose from 42.8% in the previous quarter to 47.7% in 4Q 2023," the ministry said. The proportion of businesses that intend to raise wages also increased.

Still, the ministry warned that downside risks persist in the global economy, saying it expects business reorganizations or restructuring to continue, which could lead to further retrenchments.


Write to Ronnie Harui at ronnie.harui@wsj.com


(END) Dow Jones Newswires

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