Singapore labour market shows steady growth amid tight hiring conditions
- Josephine Tan
- Topics: Home Page - News, Mobility, News, Singapore
Singapore’s labour market continued to expand in Q4 2025 and over the full year, with unemployment and retrenchment levels remaining low, according to preliminary data from the Ministry of Manpower (MOM).
The expansion is expected to persist into Q1 2026, with about one in four employers signalling plans to raise wages amid a tight labour market. MOM’s surveys found that the proportion of organisations planning salary increases grew from 19.3% in September 2025 to 26.4% in December, reflecting “improving business outcomes and continued competition for labour in certain areas,” the ministry said.
Total employment—encompassing both Singapore residents and foreign workers—rose by 19,600 in the October-to-December period. While this growth was lower than the 25,100 increase in the previous quarter, it outpaced H1 2025. For the full year, employment expanded by 57,300, surpassing 2024’s growth of 44,500.
Among Singapore residents, employment was concentrated in financial services and health and social services, while foreign employment continued to be driven by the construction sector, primarily work permit holders.
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Unemployment rates remained broadly stable at 2% throughout 2025, mirroring levels seen over the preceding two years. Meanwhile, retrenchments rose to 14,400 last year, up from 13,020 in 2024, largely due to layoffs in the transportation and storage, and financial services sectors. MOM noted that corporate restructuring was the main reason organisations cited for workforce reductions.
Looking ahead, the labour market is expected to maintain its growth trajectory, though hiring is showing signs of caution. The ministry’s surveys indicated that the share of organisations planning to hire in the next three months edged down slightly from 44.1% in September to 43.3% in December. The proportion of organisations anticipating retrenchments rose from 2.3% to 4.3% over the same period, but MOM said it “remains low,” signalling selective workforce adjustments rather than broad-based job cuts, reported The Straits Times.
