The Ministry of Manpower (MOM) reported on Thursday (Nov 28) that the proportion of Singapore residents either working or actively seeking employment has continued to decline, reflecting the nation's ageing population.
This year, 68.2% of the working-age population (aged 15 and older) were employed or looking for work, a decrease from 68.6% in 2023 and 70% in 2022. In 2021, the figure stood at 70.5%.
The decline in the labour force participation rate is largely attributed to the increasing proportion of older residents. While participation rates have risen across younger age groups, the overall rate has fallen due to a smaller percentage of seniors engaging in the workforce. Among those aged 65 to 69, only 50.5% are either working or looking for work, compared with 94.1% of those aged 30 to 34.
Despite this, Singapore's labour force participation rate for seniors remains high compared with other major cities globally. Seniors aged 60 and above now represent 18.9% of the workforce, while those under 30 make up only 14.6%.
"The ageing population is something that I think we've been very concerned about," said Mr Ang Boon Heng, director of the manpower research and statistics department. He added that MOM has been successful in bringing older workers back into the workforce and increasing their employment rates. Ten years ago, only 41.2% of those aged 65 to 69 were working or looking for work.
In addition to the decline in labour force participation, Singapore is also seeing a drop in the old-age support ratio. In 2014, there were six younger residents for every senior aged 65 and older. By this year, that figure has fallen to 3.5, with projections suggesting it will further decrease to 2.7 by 2030. If foreign workers are included, the ratio rises to five, indicating that foreign talent will be essential in supporting Singapore's ageing population, MOM noted.
"If we do not bring in foreign workers, the burden will fall on the resident workforce, which would likely lead to higher taxes," Mr Ang stated.
The overall employment rate for residents aged 15 and over was 66% this year, a slight drop from 66.2% in 2023 and from a record high of 67.5% in 2022. Unemployment rates rose marginally from 2.4% in 2023 to 2.7% in 2024, though MOM noted that this remains within the historical range.
Unemployment was higher in certain sectors, including information and communication, where the rate rose from 3.8% last year to 5% this year. The financial and insurance services sector also saw an increase, with unemployment rising from 3% to 3.8%. MOM attributed these increases partly to retrenchments driven by business restructuring amid global economic challenges. Unemployment also increased in manufacturing, accommodation, and administrative services.
CNA
