SINGAPORE – Fresh opportunities arising from Singapore’s evolving economy are showing up in the job market, as the share of vacancies for newly created positions reached a high of 47.3 per cent out of all vacancies in 2023.
This is up from 38.7 per cent in 2022, and is the largest share recorded since the Ministry of Manpower (MOM) began tracking this figure in 2018.
The information and communications sector was particularly active in creating new vacancies in 2023 despite restructuring and layoffs in tech firms, said the ministry on March 25.
More than 70 per cent of all vacancies in the infocomms sector were for new positions.
Software, Web and multimedia developers were in hottest demand among professional, managerial, executive and technical (PMET) roles, contributing the largest share to PMET vacancies in 2023, like in 2022.
Job vacancies for systems analysts also remained within the top 10 PMET vacancies.
MOM said in a statement accompanying its full-year job vacancies report that the majority of newly created positions across the economy arose due to business expansion into existing and new functions.
“This reflects the evolving nature of our economy and the accompanying changes in manpower demand,” it said.
OCBC Bank chief economist Selena Ling said that if more firms need to reallocate existing jobs to growth areas, there will likely be layoffs along with job creation. On the other hand, if there are more firms purely expanding headcount, the economy would see jobs being created without as many accompanying layoffs.
Mr Ang Boon Heng, director of MOM’s manpower research and statistics department, told reporters at a media briefing on March 25 that tech companies are looking at new areas, like artificial intelligence, to invest in.
That is why they are creating new roles amid high-profile layoffs in the sector over the course of 2023, he said.
Overall, the labour market remained tight as openings continued to outnumber job seekers, said the ministry.
There were 174 job vacancies for every 100 job seekers in December 2023, up from 164 vacancies in September 2023.
The proportion of vacancies that were for PMET roles continued to rise, reaching 57.2 per cent in 2023, up from 56 per cent in 2022 and 39.2 per cent in 2013.
MOM said the higher demand for skilled workers over the decade was seen particularly in sectors such as infocomms, financial and insurance services, professional services and health and social services.
The report said that, besides strong demand for tech jobs in 2023, job openings for business development and sales professionals rose as establishments sought to expand their businesses and improve the efficiency of their processes.
The demand for registered nurses and enrolled nurses has also remained strong, as the healthcare sector continues to expand.
The ministry also said employers were willing to pay more to fill these positions, compared with the year before.
For instance, the minimum pay employers were prepared to offer for software, Web and multimedia developers rose from $4,200 in 2022 to $5,000 in 2023. For nursing professionals like registered nurses, employers were prepared to pay at least $2,730, up from $2,500.
The report is based on survey responses from 16,800 employers employing more than 2.1 million people in total. They were polled from September to December 2023, with a reference date of Sept 30, 2023.
The survey also found that the proportion of job vacancies unfilled for at least six months dipped from 27.1 per cent in 2022 to 23.5 per cent in 2023.
The decline over the decade, from 40.3 per cent in 2013, was driven by non-PMET vacancies, MOM noted.
It said the shift reflects success in efforts to alleviate the manpower crunch for non-PMET jobs through access to foreign manpower, technology adoption, job redesign and skills upgrading, as well as efforts to raise wages through the Progressive Wage Model.
The model refers to a wage ladder pegged to skills and productivity increments in a range of lower-wage sectors and occupations.
The transportation and storage, food and beverage services, and manufacturing sectors contributed to nearly one in two of all non-PMET positions that remained unfilled after six months.
Waiters, cleaners, receptionists, healthcare assistants and bus drivers were among the top non-PMET jobs that were hard to fill.
Employers polled reported unattractive pay, unfavourable work schedules and physical strain as among the top challenges faced in hiring permanent residents and Singaporeans for non-PMET roles.
Meanwhile, as companies clamour to hire skilled workers, more are looking beyond academic qualifications when filling PMET openings.
The proportion of vacancies in which academic qualifications were not the main determinant in hiring continued to rise, to 74.9 per cent in 2023 from 73.6 per cent in 2022 and 67.1 per cent in 2017 – the first year such data was collected.
A total of 68.3 per cent of employers indicated they were open to hiring candidates with qualifications lower than what was required for the position if the applicant had relevant work experience and skills, or a good work attitude.
“This suggests that while academic qualifications are still relevant in hiring decisions, there is an increased willingness among employers to also consider applicants’ relevant experience and skill sets,” MOM said.
Employers who are more flexible and open to a wider talent pool are more successful in filling their vacancies, it noted.
“Employers with hard-to-fill vacancies are encouraged to improve the attractiveness of their jobs so that they can tap a larger talent pool to fill vacancies,” MOM added.
