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Resident employment growth was higher across most sectors, and remained concentrated in sectors such as health & social services and financial services.
Advance estimates showed stronger than anticipated labour market conditions in Singapore in Q3 2025, with total employment growing significantly, according to the Ministry of Manpower's Labour Market Advance Release - Third Quarter 2025 report.
According to the data, released on Thursday (30 October), total employment grew significantly by 24,800 in Q3 2025, up from 10,400 in Q2 2025 and 22,300 in Q3 2024. The increase was supported by growth in both resident and non-resident employment.
In Q3 2025, resident employment growth was higher across most sectors compared to the previous quarter, and remained concentrated in sectors such as health & social services and financial services. Nonetheless, global economic headwinds continued to impact outward-oriented sectors, resulting in subdued resident employment growth in information & communications and professional services — though there were improvements from the contractions seen in the previous quarter.
Additionally, wholesale trade saw a sharp decline in resident employment. Non-resident employment also contracted in these three outward-oriented sectors, reflecting pockets of weakness across them. Non-resident employment growth was mainly seen among Work Permit Holders in the construction and manufacturing sectors, while it remained relatively muted in other sectors.
Unemployment
Unemployment rates stayed low in September 2025 (overall 2.0%, resident 2.8%, citizen 3.0%), similar to the previous quarter. The unemployment rates also remained within the non-recessionary range.
Retrenchments
In Q3 2025, retrenchments (3,500 or 1.4 retrenched per 1,000 employees) remained contained, with little change from the previous quarter (3,540 or 1.4 retrenched per 1,000 employees). Retrenchments remained stable or declined across most sectors, with majority continuing to be due to business reorganisation or restructuring.
Looking ahead, the proportion of firms expecting to hire rose slightly to 44.1%, up from 43.7%, suggesting a modest improvement in hiring sentiment. However, expectations varied across sectors, with outward-oriented industries reporting weaker sentiment.
The above aside, the proportion of firms planning wage increases continued to edge down across most sectors, falling from 22.4% to 19.3%. The largest declines were observed in financial & insurance services and information & communications. Some outward-oriented sectors may also see a pickup in retrenchments.
Per the report, these trends suggest that while overall employment growth is likely to be sustained, wage growth may moderate amid cost pressures. Resident employment growth may lag behind that of non-residents, given the already high resident labour force participation rate.
With global economic uncertainties and headwinds, the Ministry urged employers and workers to tap on the various support schemes and programmes available to invest deeper and better build up human capital.
READ MORE: Singapore labour market steady in Q2 2025 as economy faces headwinds
Infographics and lead image / Labour Market Advance Release - Third Quarter 2025
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