Singapore job openings decline amid sector shifts

[SINGAPORE] Job vacancies in Singapore have fallen by nearly 17% year-on-year, extending a sustained decline, according to data released by recruitment platform Indeed. While hiring activity continues to ease, certain sectors remain constrained by a shortage of skilled labour.

The downturn in job postings reflects broader economic challenges, including tepid GDP growth and more cautious corporate expenditure. Analysts suggest that companies are shifting focus from expansion to operational efficiency, leading to a pullback in new role creation. Nevertheless, domestically driven sectors—such as healthcare and essential services—have so far remained relatively shielded from these broader trends.

Indeed’s latest figures reveal a 3% drop in job listings in April compared to March. This marks the fourth consecutive monthly decline, bringing vacancy levels to their lowest since May 2021.

Some industries have seen particularly steep reductions. Job postings in cleaning and sanitation plunged 56% over the past three months—the most significant fall across all sectors. Childcare and pharmacy roles also registered sharp declines, with job ads down by nearly 40%.

The pronounced decline in cleaning and sanitation roles is likely a result of post-pandemic normalization, as the demand for intensive cleaning services wanes. The decrease in childcare vacancies may be tied to evolving workforce dynamics, with more parents choosing flexible or remote work arrangements, reducing dependence on external childcare.

Despite the general slowdown, Singapore’s labour market remains relatively tight. The unemployment rate held steady at a low 2.1% in the first quarter, indicating that while hiring has decelerated, many employers are still in need of workers.

Economists caution that employment trends often lag behind shifts in the broader global economy. They expect it may take additional time for international uncertainties to be fully reflected in domestic job numbers.

Rising geopolitical tensions and volatile commodity prices have added to the cautious sentiment, prompting some multinational companies to put hiring plans on hold. Even so, Singapore’s solid economic fundamentals—including political stability and a highly skilled workforce—continue to underpin long-term investor confidence and may help cushion the labour market against deeper contractions.

Not all sectors are in retreat. The ageing population is driving strong demand for personal care aides and home healthcare workers, with job vacancies in these areas surging nearly 30%.

There are also early signs of a rebound in the tech industry. Listings for data analyst roles rose by 9.5% last month, hinting at a possible turnaround after a challenging 2023.

Experts attribute the tech sector’s gradual revival to renewed corporate interest in artificial intelligence and automation, as firms look to enhance productivity. Government-backed initiatives, such as the Advanced Digital Solutions program, are also playing a role by upskilling workers and maintaining a pipeline of talent for emerging digital roles.