Data from the Labour Market Report 1Q 2025—released by the Ministry of Manpower (MOM) on 27 June 2025—suggest that firms are managing their workforce more cautiously due to continued economic uncertainty.
The report showed that the labour market grew in the first quarter of 2025 but at a slower pace than in the fourth quarter of 2024.
Retrenchments also dipped slightly from the previous quarter.
Taken together, MOM said this shows that while companies are cautious about hiring, they are also avoiding major job cuts.
Employment growth for 1Q 2025
Total employment rose by 2,400, a significant dip from 7,700 in the last quarter of 2024.
Both resident and non-resident employment saw an increase by 300 and 2,000, respectively but these gains were smaller than the fourth quarter, which saw a respective increase of 1,400 and 6,300.
Resident employment grew in sectors such as health and social services, and financial services but fell in areas including professional services and IT.
Most of the non-resident job growth came from Work Permit holders, primarily in roles such as bus and truck drivers—jobs that are less likely to be filled by locals.
Unemployment rates
Unemployment rose slightly in March 2025, with the overall unemployment rate increasing to 2 per cent, and resident and citizen unemployment rates rising to 2.9 per cent and 3.1 per cent, respectively.
Long-term unemployment for residents also increased to 0.9 per cent, from 0.8 per cent in December 2024. The rate is still within normal levels seen outside of recessions, according to MOM.
Job vacancies
Job vacancies rose from 77,500 in December 2024 to 81,100 in March 2025, resulting in a slight rise in the vacancy rate from 3.1 per cent to 3.2 per cent.
These figures were recorded before the announcement of Liberation Day’s tariffs by the US, so any effects from the tariffs are not yet reflected.
While most sectors saw more openings, there were early signs of slowing demand in manufacturing.
Retrenchments
For the first quarter of the year, retrenchments decreased slightly to 3,590, from 3,680 in the fourth quarter of 2024.
The incidence of retrenchment also remained unchanged at 1.5 per 1,000 employees—below recessionary norms.
MOM found that fewer workers were placed on short work weeks or temporary layoffs, and more retrenched residents managed to find new jobs within six months.
The resident re-entry rate rose from 58.1 to 60.6 per cent.
Labour market expectations
According to MOM, the global economic outlook remains uncertain, though Singapore’s external demand has improved slightly as major economies move to ease trade tensions.
The rise in job vacancies from December 2024 to March 2025 does not yet reflect the impact of Liberation Day’s tariffs announced on 2 April 2025.
Polls from April and May 2025, following the reduction or suspension of some tariffs, indicate that companies are still cautious in their hiring plans.
While hiring intentions rose slightly (42.2% of firms polled in April and May 2025 planned to hire for 3Q 2025), the increase was driven mainly by sectors like professional and financial services. Most other sectors showed weaker hiring sentiment.
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