SBF’s survey shows hiring optimism while local employee reports layoffs amid economic woes

A recently published annual manpower and wage survey by the Singapore Business Federation (SBF) presented a positive outlook, indicating that more businesses plan to expand hiring.

However, the sentiment on the ground tells a different story. An employee took to Reddit to share that due to the weak economy, he is about to be laid off, claiming that his company is not hiring locals, with job opportunities seemingly being redirected to countries like Korea and Australia.

On 22 August, SBF released the annual manpower and wage survey, which highlighted that more businesses expect the economy to improve than worsen. Notably, 40% of businesses plan to expand hiring in the next 12 months, up from 29% last year.

The SBF survey highlights that rising manpower costs remain the top challenge for 75% of businesses, slightly down from 82% in 2023.

Limited local talent has emerged as a close second challenge, cited by 61% of respondents, up from 40% in the previous year.

Additionally, 53% of businesses expressed concerns about new foreign manpower policies, though this figure has decreased from 58% previously.

Despite these challenges, the survey indicates that businesses are adopting various strategies to cope, such as enhancing local recruitment, outsourcing functions, and delaying business expansion.

The survey also notes that fewer businesses plan to increase salaries or non-salary staff costs compared to the previous year. Instead, there is a shift towards investing in staff training, flexible work arrangements, and redeployment.

Redditor Raises Concerns About Job Market and Calls for Limits on EP

In contrast, a Redditor took to the platform to question the state of the job market, sharing that he is about to be laid off.

He sought opinions from fellow users on whether it’s time to impose a limit on Employment Passes (EP), expressing frustration by saying, “Most of my collegues are foreigners and it seems that they hire their own. ”

How bad is the Job market
byu/duckulapip inaskSingapore

The Reddit post also shared a data from the Ministry of Manpower (MOM), highlighting that the number of EP holders has been steadily increasing since 2021, rising from 161,700 to 205,400 by December 2023.

The financial services sector, known for its higher wage norms, will see an even more substantial increase, with a new minimum of S$6,200 a month, up from the current S$5,500.

Reddit users share experiences of being laid off

Another user, who works in the tech sector, mentioned that the situation is particularly bad in the field.

He claiming that many companies are defaulting to hiring their own countrymen, which has made it harder for him to find a job after being laid off.

A Redditor shared fear of being retrenched, describing the current job market as a “wake-up call,” mentioning that his team is trying to collaborate with different teams within his company to create more value, hoping that this might help them stay employed.

A comment believed that limiting the number of EP won’t help much, stating, “Instead, companies will hire more remote workers like what you are seeing and have only skeletal crew in Sg.”

Another Redditor highlighted the challenge of balancing the job market during economic fluctuations.

He noted that Europe benefits from strong labour protections, which trap jobs during good times but make it difficult for companies to lay off workers during downturns. This situation discourages smart businesses from investing in Europe.

Separately, on The Straits Times Facebook post regarding the SBF’s survey, netizens discussed the rising cost of living in Singapore, including increases in property prices, car COE, rental costs, and food expenses.

A netizen criticised the government for encouraging Singaporeans to take skilled labor jobs that are low-paying and require long hours, while foreign talent is employed for professional, managerial, executive, and technical (PMET) roles.

Advance labour report shows 100% of job growth in Q2 2024 went to foreign workers

According to the latest MOM’s advance labour report, which released last month, reveals total employment in Singapore increased by 11,300 in second quarter of 2024, a substantial rise compared to the 4,700 growth in Q1 2024.

The report indicates that non-resident employment was solely responsible for this increase.

In contrast, resident employment saw a minor decline, which MOM attributed primarily to seasonal factors in the Retail Trade sector, where temporary hiring typically spikes in the fourth quarter to cater to year-end festivities.

Earlier, Dr Chee Soon Juan, Secretary-General of the Singapore Democratic Party (SDP), has criticised Prime Minister Lawrence Wong for neglecting to address Singaporeans’ concern in his National Day Rally speech.

According to Dr Chee, PM Wong failed to provide concrete solutions to reduce the cost of living and manage the influx of foreign workers, issues that are paramount to the well-being of Singaporeans.

Dr Chee stressed that the solution lies in controlling the flow of foreign workers and enhancing productivity, as the country’s founding father Lee Kuan Yew had advocated.