Non-resident employment rises by 9,200 in second quarter; no evidence S Pass and Employment Pass holders displaced residents

Non-resident employment growth in the second quarter of this year was driven mainly by WP holders, while the numbers of S Pass and Employment Pass (EP) holders fell. Available data does not indicate that S Pass and EP holders displaced residents from jobs during this period.

According to the Labour Market Report released by the Ministry of Manpower (MOM) in September, non-resident employment rose by 9,200 in the second quarter, more than four times the increase of 2,200 among citizens and permanent residents.

Acting Minister for Manpower and Senior Minister of State for Digital Development and Information Jasmin Lau said on Wednesday (4 November) that, excluding migrant domestic workers, the number of WP holders rose by 10,900 in the second quarter of this year, while the numbers of S Pass and EP holders each fell by 900.

Lau was responding to an oral question from Workers’ Party Member of Parliament (MP) for Aljunied Group Representation Constituency Gerald Giam, who wanted to know which occupations recorded the largest increases in S Pass and EP holders, and how these compared with resident employment growth in the same occupations.

Lau said MOM had yet to compile employment data by occupation for the second quarter of this year. By industry, however, the decline in S Pass and EP holders was concentrated in professional services, financial services, and information and communications, while resident employment in these industries rose.

The administrative and support services sector, which covers security, cleaning, recruitment and office support services, recorded the largest increase in S Pass and EP holders. The growth was concentrated in office administrative and support services.

Resident employment in the sector fell, with the decline concentrated in the employment placement and recruitment services sub-sector.

Lau noted that changes in resident and non-resident employment were driven by different sub-sectors. Available data does not indicate that S Pass and EP holders displaced residents from jobs during this period.

In a supplementary question, Giam cited advance estimates from the third-quarter Labour Market Report, which showed that 4,800 workers had been retrenched, mainly because of business restructuring.

He asked whether MOM cross-checked retrenchment data against newly approved EPs and S Passes to establish whether employers were replacing retrenched residents with foreign pass holders.

Lau said the ministry would ask employers to explain the reasons for retrenchments and decide whether to conduct further checks based on those reasons and each company's circumstances.

Addressing the gap between resident and non-resident employment growth, Lau said in a written reply to Pioneer MP Patrick Tay on Tuesday (3 November) that the increase in non-resident employment came mainly from WP holders in construction and manufacturing. These jobs are generally less likely to be held by local residents.

In contrast, resident employment growth was spread across various sectors, including transportation and storage, public administration and education, health and social services, professional services, financial services and information and communications.

“Our focus is to enable as many Singaporeans as possible to participate meaningfully in the workforce and access good jobs,” said Lau.

To this end, the government continues to attract businesses to invest in Singapore and create jobs in growth sectors, while supporting employers in creating quality jobs and redesigning roles through the Workforce Transformation Package.

It also ensures that Singaporeans are treated fairly when applying for jobs through the Fair Consideration Framework, and adjusts the work pass framework when needed to ensure that foreign manpower complements rather than replaces the local workforce.

The government will also continue to help mid-career Singaporeans acquire new skills and move into jobs with better prospects through Career Conversion Programmes and the SkillsFuture Career Transition Programme.

Lau said, “As our resident workforce grows more slowly, sustaining employment and income growth for Singaporeans will increasingly depend on productivity, job quality and career progression alongside efforts to grow resident employment headcount.”