SINGAPORE – Singapore’s labour market continued to expand in the first quarter of 2025, but at a slower pace, as economic uncertainty and rising global trade tensions weighed on business confidence.
According to advance estimates released by the Ministry of Manpower (MOM) on Monday (Apr 28), total employment, excluding migrant domestic workers, rose by 2,300 in Q1 2025. This was lower compared to 3,200 in the same period last year and 7,700 in the final quarter of 2024.
Slower Growth Across Key Sectors
The moderation in employment growth was mainly due to smaller increases in both resident and non-resident employment.
- Resident employment continued to expand in sectors such as health and social services and financial services.
- However, outward-oriented sectors like professional services, manufacturing, and information and communications recorded declines.
Meanwhile, the rise in non-resident employment was driven by work permit holders filling lower-skilled roles in administrative and support services and community, social and personal services.
Unemployment Edges Up, But Remains Stable
The labour market also saw a slight increase in unemployment rates:
- Resident unemployment rate rose from 2.8% in December 2024 to 2.9% between January and March 2025.
- Citizen unemployment rate held steady at 3.1% in March, though it was slightly higher than the 2.9% recorded in December 2024.
Despite the uptick, MOM highlighted that unemployment rates remained within the non-recessionary range.
Retrenchments Fall in Q1 2025
In a positive development, retrenchments fell during the first quarter:
- The number of retrenchments dropped to 3,300, down from 3,680 in Q4 2024.
- The retrenchment rate decreased to 1.3 per 1,000 employees, compared to 1.5 previously.
MOM noted that most layoffs were due to business restructuring rather than an industry downturn, suggesting that companies are adjusting operations rather than reacting to falling demand.
Business Sentiment Turns Cautious
Hiring intentions have softened as business confidence weakened:
- In December 2024, more employers had plans to hire and increase wages.
- By March 2025, however, fewer businesses expected to recruit or raise salaries in the next three months.
MOM cautioned that the labour market is expected to soften further amid global uncertainties.
Government Support for Workers and Businesses
In response, the government has rolled out several initiatives:
- The CareersFinder feature on Workforce Singapore’s MyCareersFuture portal helps jobseekers explore career pathways and training options.
- The new SkillsFuture Jobseeker Support scheme provides up to S$6,000 in financial aid over six months for involuntarily unemployed workers.
A special task force has also been set up to explore additional measures to support businesses and workers during this period of uncertainty.
The full Labour Market Report for Q1 2025 will be released in mid-June, offering deeper insights into employment trends and workforce developments.
