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Monthly unemployment rates also edged up in March 2026, but remained broadly stable when compared to December 2025.
The number of retrenchments in Singapore remained low in Q1 2026, unchanged from the previous quarter, according to the Ministry of Manpower’s latest Labour Market Advance Release for the first quarter of this year.
Retrenchments stood at 3,700 in Q1 2026, compared to 3,690 in Q4 2025. The incidence of retrenchment also held steady at 1.5 per 1,000 employees, unchanged from the previous quarter. Across most sectors, retrenchments were stable or declined, with the majority attributed to business reorganisation or restructuring.
In terms of unemployment, monthly unemployment rates edged up in March 2026 (overall: 2.1%, resident: 2.9%, citizen: 3.1%) but remained broadly stable when compared to December 2025 (overall: 2.0%, resident: 2.9%, citizen: 3.0%).
On the employment front, total employment in the quarter grew by 5,000, more than the 2,300 in the previous year, but down from the 17,700 in the previous quarter. On a seasonally adjusted basis, employment growth remained higher than a year ago, although it has eased from the previous quarter.
With regards to sectoral performance, resident employment growth was concentrated in transportation & storage and administrative & support services, while non-resident employment growth continued to be driven by construction, but at a slower rate than last quarter.
Looking ahead, the labour market is expected to remain tight and continue expanding in the next quarter. However, businesses are likely to take a more cautious approach amid heightened economic uncertainty and geopolitical risks.
MOM’s business expectation polls showed that the proportion of firms expecting to hire in the next three months declined from 54.6% in February 2026 to 44.6% in March 2026. At the same time, the proportion of firms intending to raise wages dropped from 39.3% to 25.4% over the same period.
Although there were early signs of stabilisation in April, expectations remained below pre-crisis levels in February, the ministry added.
"This suggests a more measured pace of hiring and emerging caution among firms, with potential softening if external conditions weaken."
Lead image / MOM
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