How much of Singapore’s employment growth is truly benefiting Singaporeans?

by Leong Sze Hian/Terry Xu The Ministry of Manpower’s (MOM) latest labour market release paints a picture of steady growth, even if at a slower pace, with both resident and non-resident employment contributing to the expansion in 2024. However, a closer look at the statistics over the past few years raises questions about the balance of job creation between locals and foreigners, and whether Singaporean workers are truly benefiting from the overall employment growth. From January 2022 to September 2024, 314,500 of the total employment growth of 354,600—an overwhelming 88.7%—went to non-residents. While MOM has not yet broken down the 4Q 2024 employment growth of 8,700 into resident and non-resident components, even if 90% of that growth is attributed to residents, it barely shifts the long-term trend. Over the last three years, 86.8% of all job growth has gone to foreigners. This raises critical questions about how much of the remaining 13.2% of job growth went to Singaporeans, given that resident employment figures include both Singapore citizens and permanent residents (PRs). The distinction matters, as the inclusion of PRs in resident employment statistics can obscure the actual share of job growth going to citizens. Furthermore, when non-residents are granted PR status, their reclassification as "resident employment growth" can artificially inflate the perception of gains for local workers while masking declines in non-resident employment.

A disparity in distribution

MOM’s advance release noted that resident employment growth rebounded in 2024 after a decline in 2023, with Singaporeans and PRs taking up jobs in higher-skilled sectors like professional services, financial services, and health and social services. This is certainly positive, but it’s unclear how many of these opportunities are going specifically to Singaporeans. In contrast, non-resident employment growth continues to be concentrated in the construction sector, driven by hiring for lower-skilled jobs held by Work Permit holders. This dependency on foreign workers for labour-intensive roles is not new, but the sheer scale of job creation for non-residents in recent years underscores a structural reliance that raises longer-term questions about Singapore’s workforce strategy.

What do the numbers really mean for Singaporeans?

While total employment growth in 2024 slowed significantly to 45,500 (down from 78,800 in 2023), it’s critical to understand who benefits most from these new jobs. Are Singaporean workers—particularly those displaced by restructuring—able to access the higher-skilled roles being created? Or is the growth in resident employment primarily benefiting PRs, while Singaporeans see only marginal gains? This distinction matters because Singapore’s workforce strategy has long emphasised the importance of creating opportunities for local workers. MOM has highlighted its efforts to boost upskilling through initiatives like Career Conversion Programmes (CCPs) and the SkillsFuture movement. These programmes are crucial, but their effectiveness in bridging the gap between job creation and Singaporean employment needs to be scrutinised more closely.

Foreign talent remains a key pillar

MOM has emphasised that foreign talent plays a critical role in complementing the local workforce, with initiatives like the Manpower for Strategic Economic Priorities Scheme and the Complementary Assessment Framework aimed at attracting high-value foreign talent. However, the lion’s share of employment growth in recent years has gone to foreigners, raising concerns about the long-term implications for Singapore’s economic and social cohesion. While the government argues that an ageing resident workforce and plateauing participation rates necessitate reliance on foreign talent to maintain competitiveness, this perspective warrants closer scrutiny. Policies must ensure meaningful opportunities for Singaporeans remain a priority. Greater transparency and a more nuanced breakdown of employment statistics are urgently needed to evaluate whether local workers are truly benefiting or being sidelined in favour of foreign hires.

Looking ahead

The MOM report due in March 2025 will provide a clearer breakdown of the employment growth figures, offering deeper insights into the resident and non-resident employment split. This will be an important moment to assess how much of Singapore’s employment growth is truly benefitting Singaporeans. Singapore’s labour market is at a crossroads. The high-skilled roles emerging in sectors like professional services and financial services signal opportunities for upward mobility, but the question remains: are these opportunities reaching Singaporeans? If not, what more can be done to ensure that the benefits of economic growth are equitably shared?