Despite Rising Manpower Shortages, Singapore’s Labour Market Improved On All Fronts In 2022

DigitalCFO Newsroom | 10 November 2022

The report highlights key trends and challenges that are impacting and transforming Singapore’s industries and workforce, as well as consolidates the latest salary and job developments across key industries. 

PERSOLKELLY, the leading HR solutions and recruitment company headquartered in Singapore, has released the 2023 Singapore Salary Guide in collaboration with SkillsFuture Singapore. The report highlights key trends and challenges that are impacting and transforming Singapore’s industries and workforce, as well as consolidates the latest salary and job developments across key industries. 

The study, which concluded in July 2022, focused on the following themes: Singapore Labour Outlook, Commentaries, as well as Industries. Salary figures included in the 2023 Singapore Salary Guide are derived from combining the expert market knowledge of senior recruitment professionals within the PERSOLKELLY Singapore network, as well as actual job placement data recorded on the PERSOLKELLY Singapore database. 

Singapore’s Improving Labour Market in 2022

Singapore’s labour market continued to improve on all fronts in the first quarter of 2022, with total employment expanding to 42,000. Resident employment exceeded pre-pandemic levels at 3.9% higher than in December 2019, while unemployment rates have continued to trend down to pre-pandemic levels. 

Singapore saw a rise in growth sectors such as financial services, information and communications, professional services, as well as health and social services among resident employment. However, consumer-facing sectors saw a decline largely due to the seasonal pattern of temporary workers hired for year-end festivities leaving in the following quarter. 

Job vacancies continued to rise, reaching a new high of 126,100 in Q2 2022. Due to a decline in unemployed persons and increase in vacancies, the ratio of job vacancies to unemployed persons also increased to its highest since 1998. 

With border restrictions relaxing significantly, the non-resident workforce is expected to continue to recover, catching up with resident employment growth and alleviating the current labour market tightness. At the same time, amid a weaker external economic outlook, businesses are urged to tap on government support and press on with restructuring and transformation to maintain their competitiveness, while upskilling local workers to prepare for new and emerging jobs. 

Foo See Yang, Managing Director and Country Head, PERSOLKELLY Singapore, said, “The effects of the pandemic and macro-economic challenges had a dramatic effect on the growth of our economy, and affected many sectors and industries. It is encouraging that this year’s growth outlook remains bright and we hope that this year’s salary guide will be able to provide organisations with refreshed recruitment strategies and approaches to help them attract, retain and develop talents.’ 

The Singapore Salary Guide comes fresh off the back of the launch of PERSOLKELLY’s 2022 APAC Workforce Insights, which highlighted the adoption rates by market and industry, reasons for adoption, skills in demand, the trends, as well as strategies and effectiveness of offshoring. 

Established in 2016, PERSOLKELLY Singapore is one of the largest recruitment companies in Asia Pacific, and has placed over 59,000 positions across the region and works together with 98% of Fortune 100™ companies for their workforce solution needs, which currently comprises permanent placements, temporary staffing, contract and payroll administration, HR advisory and regional talent solutions.