Noting that the labour market was still tight in the last quarter of 2022, Citi analysts Kit Wei Zheng and Jester Koh believe there is “limited concern” on a deterioration in 2023. “Despite higher retrenchments and slower inflow of foreign workers, the job market remained tight in 4Q2022, with unemployment rates at pre-Covid lows. Despite headwinds, policymakers do not seem overly concerned about a sharp deterioration in the job market in 2023,” they say.
Analysts believe the Singapore labour market could ease in 2023 following the Ministry of Manpower’s (MOM) 2022 labour market advance release on Jan 31.
Statistics provided by the MOM show that Singapore’s unemployment rate fell to 2.0% in 4Q2022, from 2.1% in 3Q2022. For the quarter, total employment expanded for the fifth consecutive quarter, bringing total employment growth for the full year to a record number of 231,700, although retrenchment levels were higher as well.
