Trends in the Recruitment and Job Placement Market in Singapore, April-June 2024

＜Market Overview in Singapore＞

Singapore's economy displayed remarkable resilience in the second quarter of 2024 (April-June), exceeding expectations with a GDP growth rate of 3.2% compared to the previous year. The unemployment rate remained low throughout this period. The manufacturing, finance and insurance industry thrived while the tourism industry's recovery stalled due to a significant decline in Chinese visitors. The retail sales stagnated amidst rising inflation. Despite the slowdown, the government continues to stimulate the economy through fiscal and monetary policies.

Looking ahead, concerns about the global economic slowdown have heightened uncertainty, with fears centred on the economic downturns in the United States and China, alongside geopolitical risks. The government is preparing for these risks and remains committed to initiatives aimed at stabilising the economy. In efforts to ensure employment stability for Singaporeans, regulatory measures on foreign employment, such as tightening work visa policies, are being upheld.

＜Local Hiring Trends among Companies in Singapore＞

Since the introduction of the new visa acquisition criteria system, COMPASS, in September last year, companies with a high ratio of Japanese employees have found it increasingly difficult to obtain work visas. Consequently, job opportunities for Japanese individuals requiring work visas have decreased. Major companies, affected by COMPASS, are actively hiring Singaporean personnel to reduce the proportion of Japanese employees.

The extension of work visas for currently employed Japanese staff and the issuance of new Employment Passes (EP) for replacement expatriates dispatched from Japan are still permitted. However, there is an increasing trend among companies to limit locally hired positions to Singaporeans and permanent residents. Small and medium-sized enterprises with fewer than 25 total staff members, which automatically receive 20 points in the COMPASS corporate evaluation criteria for diversity of nationalities and the employment ratio of local employees, continue to offer some job opportunities for Japanese candidates. Nonetheless, these opportunities are limited in number and scope.

＜Job-Seeker Trends in Singapore＞

In the April-June quarter of 2024, the Singapore job market saw a divergence in job seeker trends amid global economic slowdown concerns. Singaporeans and permanent residents actively sought job information, exploring their market value and engaging in job searches aimed at career advancement, salary increases, and improved work-life balance despite the economic uncertainty.

Conversely, the situation remained challenging for foreign job seekers. An increasing number faced difficulties in renewing visas and obtaining new work visas. Additionally, some were forced to seek new employment due to the relocation of their departments overseas.