Total employment growth in Singapore eased to 2,400 in Q1 2025, from 7,700 in Q4 2024

At the same time, retrenchments declined slightly from 3,680 in Q4 2024 to 3,590 in Q1 2025.

⁠Singapore's labour market continued to expand in Q1 2025 but at a slower pace in comparison with the previous quarter, according to new data by the Ministry of Manpower (MOM).

Among the results of the Labour Market Report First Quarter 2025 was the increase in the number of job vacancies from 77,500 in December 2024 to 81,100 in March 2025, raising the job vacancy rates from 3.1% to 3.2%.

According to MOM, the job vacancy figures pertain to the period prior to the US' Liberation Day tariffs, hence they are yet to reflect any potential impact from the tariffs. Despite this, the increase in job vacancies was broad-based across sectors — although signs of slowing manpower demand were observed in the manufacturing sector.

Key highlights from the report include: 

• Total employment growth eased to 2,400 in Q1 2025, down from 7,700 in Q4 2024.
  • Both resident (300) and non-resident (2,000) employment continued to grow but at a slower pace than in the previous quarter (1,400 and 6,300 respectively).
    • Resident employment growth was uneven across sectors, with a rise seen in the health & social services and financial & insurance services sectors but declined in professional services and information & communications industry.
    • Non-resident growth was led by Work Permit holders who were mainly working in positions which were less likely to attract resident applicants, such as bus and truck drivers.
• Unemployment rates have risen slightly in March 2025 (overall: 2%; resident: 2.9%; citizen: 3.1%).
  • The resident long-term unemployment rates have also increased slightly to 0.9% in March 2025 compared to December 2024 (0.8%) but remained comparable to non-recessionary norms.
• Retrenchments declined slightly from 3,680 in Q4 2024 to 3,590 in Q1 2025.
  • The incidence of retrenchment remained unchanged at 1.5 retrenched per 1,000 employees and well within non-recessionary norms (2014 to 2019 quarterly average of 1.7 per 1,000 employees).
  • Fewer employees were placed on short work-week or temporary layoff (from 660 in Q4 2024 to 570 in Q1 2025), while the resident re-entry rate into employment within 6 months post-retrenchment improved from 58.1% in Q4 2024 to 60.6% in Q1 2025.
  • These numbers suggest that while firms are exercising caution in hiring, they are also holding back from deeper workforce cuts, reflecting a measured approach in workforce management amid ongoing economic uncertainty.

Labour market expectations 

While major economies have taken steps to ease global trade tensions, the near-term global economic outlook remains uncertain. That said, Singapore’s external demand prospects have seen a slight uptick.
According to the latest polls conducted in April and May 2025—reflecting sentiments following the reduction and partial suspension of certain tariffs—firms continue to adopt a measured stance on manpower planning.

Hiring intentions saw a modest increase, with 42.2% of firms indicating plans to hire for Q3 2025, up from 40.5% in the January–March 2025 survey (Q2 2025 outlook). However, this rise was not broad-based, and was mainly driven by sectors such as professional services and financial services, while hiring sentiments in most other industries softened.

Meanwhile, wage expectations have remained stable, with 21.2% of firms in April and May 2025 indicating plans to raise wages in Q3—slightly lower than the 21.7% reported in the earlier Q2 outlook.

Supporting workforce and enterprise transformation

As announced at Budget 2025, the Government will introduce the SkillsFuture Workforce Development Grant (WDG) under the Enterprise Workforce Transformation Package. This grant brings together workforce transformation schemes administered by Workforce Singapore (WSG) and SkillsFuture Singapore (SSG) and will simplify the application process.

In the meantime, employers can continue to tap on existing schemes such as the Career Conversion Programmes, Mid-Career Pathways Programme, and Support for Job Redesign under the Productivity Solutions Grant (PSG-JR). These programmes help businesses redesign jobs in anticipation of change and make them more productive and attractive to jobseekers.

The SkillsFuture Enterprise Credit will be redesigned in 2026, along with a fresh S$10,000 in credits for workforce transformation programmes. Employers who have not tapped on their existing credits are encouraged to do so to offset out-of-pocket costs for these initiatives.

Empowering workers to take charge of their careers

Through Career Health SG, the Government aims to empower Singaporeans to take charge of their careers and access better job opportunities amid a changing economy. Tools such as the CareersFinder feature on WSG’s MyCareersFuture portal allow individuals to explore career and training options.

Jobseekers can also access career coaching and guidance through WSG and NTUC’s Employment and Employability Institute, along with a wide range of SkillsFuture training options—including the SkillsFuture Level-Up Programme—to strengthen career resilience and long-term prospects.

Providing targeted support for jobseekers

The SkillsFuture Jobseeker Support Scheme launched earlier this year, offers temporary financial assistance of up to $6,000 over six months to individuals who are involuntarily unemployed, supporting them as they look for their next role.

Building long-term economic resilience

MOM has also stated that the Singapore Economic Resilience Taskforce is reviewing further measures to help businesses and workers navigate short-term uncertainties and prepare for the new economic landscape.

"The Government is working with the Institutes of Higher Learning to ramp up access to job opportunities for fresh graduates and encourages businesses to think long-term and continue to grow a pipeline of talent for the future," the Ministry added. 

READ MORE: Singapore's labour market expands at moderate pace in Q1 2025 amid global pressures

Lead image / MOM Telegram