1-2-2024 (SINGAPORE) Job switching among local workers in Singapore has reached its lowest level in six years, with only 14.7% of workers changing jobs in the past two years, a rate not seen since 2017. Despite a tight labor market, the weaker economic environment has dimmed the chances of landing a new position.
According to a recent survey by the Ministry of Manpower, the decline in job changes was observed across all age groups, white-collar and blue-collar positions, and various industries. However, workers aged 25 to 29, who are still exploring options in their early careers, continued to change employers more frequently compared to other age groups.
While job moves decreased in all industries last year, workers in sectors such as information and communications, and administrative and support services were more likely to switch positions. The survey also revealed that around 50% of workers had accumulated at least five years in their current job, and employees aged over 50 were more likely to have worked in the same firm for at least 10 years.
The Ministry of Manpower attributed the rise in long-staying employees to training, reskilling, and policies such as the Retirement and Re-employment Act, which supports older workers who wish to remain employed.
It remains uncertain whether job prospects will continue to remain subdued in 2024. However, a recent LinkedIn data report indicated that 86% of professionals in Singapore are considering a new job this year, a 15 percentage point increase from 2023. The report suggests that businesses have improved their efforts to retain employees by focusing on factors beyond monetary compensation, such as professional development, career progression plans, corporate culture, and hybrid work arrangements.
As organizations navigate the changing landscape, experts are urging human resources officers to prioritize driving productivity and retaining workers. Redesigning roles and promoting internal mobility are suggested as alternatives to replacing weaker talent in order to maintain employee morale, employer branding, and long-term organizational health.
The Ministry of Manpower’s findings also highlighted a decline in training hours for both employed and unemployed individuals across all age groups, which was attributed to a decrease in online training. Efforts to narrow the wage gap in Singapore have shown positive results, with real income growth for lower-wage workers outpacing that of the median worker. Additionally, policies promoting flexible work have increased workplace participation by women.
While self-employment reached a record low of 12.2% in 2023, the majority of workers (87.8%) chose to work for others, possibly due to increased job opportunities and economic uncertainties.
Although Singapore employees are working fewer hours, with an average of 41.9 hours per week compared to 45.3 hours in 2013, they still work longer hours than their counterparts in similar high-income economies, as part-time work is less common in Singapore.
