MOM Statement on Labour Market Developments

Firms must adapt as pace of local employment growth slows

1. The Ministry of Manpower’s Statement on Labour Market Developments sets out the labour market situation in 2014, and outlook for 2015. The key messages of the Statement are:
   
   i. Local workforce growth jumped in the past 2 years to meet labour demand; however, this growth is likely to taper significantly going forward – Local employment growth is expected to slow to an average of 20,000 per annum in the last part of this decade.
   
   ii. Foreign manpower policies will remain tight – It remains crucial for the Singapore economy to restructure towards reducing manpower reliance. Foreign manpower policies will remain tight to ensure that the foreign workforce grows at a sustainable pace.
   
   iii. Given the new normal of slower workforce growth, firms will need to focus on raising the quality of their workforce as a key source of growth, productivity and competitiveness.
2. The full MOM Statement on Labour Market Developments is available at MOM Statements, and the Labour Market 2014 report is available on the Ministry of Manpower’s Statistics and Publications webpage.