Singapore’s labour market continued to expand in the first quarter of 2026, but the pace of growth has started to moderate as employers become more cautious with hiring and wage increases.
According to the Ministry of Manpower’s Q1 2026 advance labour market release, total employment grew by 5,000 in Q1 2026. This marks the 18th consecutive quarter of employment growth, although it was lower than the 17,700 jobs added in Q4 2025. MOM said the slowdown was partly due to seasonal factors and a high base from the previous quarter, rather than a broad-based weakening of the job market.
Key Highlights from Singapore’s Q1 2026 Labour Market
Despite slower employment growth, the overall labour market remains relatively stable.
Unemployment rates remained broadly steady in March 2026, with overall unemployment at 2.1%, resident unemployment at 2.9%, and citizen unemployment at 3.1%. Retrenchments also stayed low, with 3,700 workers retrenched, or 1.5 retrenchments per 1,000 employees. Most retrenchments were due to business restructuring or reorganisation.
However, hiring sentiment has softened. The share of companies expecting to hire in the next three months fell from 54.6% in February 2026 to 44.6% in March 2026. Wage expectations also declined, with fewer firms planning salary increases over the same period.
What This Means for Job Seekers in Singapore
For job seekers, the message is clear: opportunities are still available, but competition may become tougher.
A slower hiring market does not mean companies have stopped hiring. Instead, employers may take longer to make decisions, be more selective, or prioritise roles that directly support business growth, productivity, digital transformation, and operational efficiency.
Job seekers should focus on strengthening their profiles in areas such as:
-Digital skills
-AI and automation literacy
-Communication and customer-facing skills
-Industry-specific certifications
-Adaptability and cross-functional experience
Candidates who can show measurable impact, such as improving processes, increasing sales, reducing costs, or supporting customers better, will likely stand out more in a cautious hiring environment.
What This Means for Employers
For employers, the Q1 data suggests that the market remains tight but more measured.
Companies may be cautious about expanding headcount, but talent attraction and retention should still remain a priority. In a slower market, employers have an opportunity to review job scopes, redesign roles, and invest in upskilling existing employees.
MOM has encouraged both employers and workers to focus on workforce transformation and skills upgrading, including programmes such as Career Conversion Programmes, Mid-Career Pathways Programme, Career Health SG, SkillsFuture Credit, and SkillsFuture Jobseeker Support.
Is Singapore’s Job Market Weakening in 2026?
Singapore’s job market is not weakening broadly, but hiring growth is slowing. Employment still grew in Q1 2026, unemployment remained stable, and retrenchments stayed low. However, companies are becoming more cautious with hiring and salary increases due to economic uncertainty.
Are Companies Still Hiring in Singapore?
Yes, companies in Singapore are still hiring, but at a more measured pace. Job seekers may face longer hiring timelines and stronger competition, especially for roles where employers are looking for very specific skills.
Outlook for the Rest of 2026
Singapore’s labour market is expected to continue expanding, but growth may be slower if external economic conditions weaken. For job seekers, this means staying proactive, applying strategically, and continuously upgrading skills. For employers, it is a good time to strengthen workforce planning and build a more future-ready talent pipeline.
At sgCareers, we believe that the best way forward is to connect employers and job seekers more efficiently, especially in a market where the right match matters more than ever.
Whether you are looking for your next career opportunity or hiring talent in Singapore, sgCareers helps bridge the gap between ambition and opportunity.
FAQ about Singapore Labour Market
Is Singapore’s labour market still growing in 2026?
Yes. Singapore’s labour market continued to grow in Q1 2026, with total employment increasing by 5,000.
Why did employment growth slow in Q1 2026?
Employment growth slowed mainly due to seasonal factors, a high base from Q4 2025, and more cautious hiring plans among employers.
What is Singapore’s unemployment rate in 2026?
As of March 2026, Singapore’s overall unemployment rate was 2.1%, while resident unemployment was 2.9% and citizen unemployment was 3.1%.
Are retrenchments increasing in Singapore?
Retrenchments remained low in Q1 2026, with 3,700 workers retrenched, similar to the previous quarter.
What should job seekers do in a slower hiring market?
Job seekers should upgrade their skills, tailor applications carefully, highlight measurable achievements, and focus on roles where their experience clearly matches employer needs.
