Singapore’s labour market experienced a slowdown in the first quarter of 2025, reflecting the impact of global economic uncertainties. According to the Ministry of Manpower (MOM), total employment grew by 2,300 jobs between January and March, a significant decrease from the 7,700 jobs added in the previous quarter and 3,200 in the same period last year.

Unemployment Rates Edge Up

The resident unemployment rate increased slightly from 2.8% in December 2024 to 2.9% in March 2025. The citizen unemployment rate held steady at 3.1% in March, up from 2.9% in December 2024. Despite these upticks, MOM noted that unemployment rates remain within non-recessionary ranges.

Retrenchments Decline

In a positive development, retrenchments fell to 3,300 in Q1 2025, down from 3,680 in the previous quarter. The retrenchment rate decreased to 1.3 per 1,000 employees, compared to 1.5 previously. MOM indicated that most layoffs were due to business restructuring rather than industry downturns.

Sectoral Employment Trends

Employment declines were observed in outward-oriented sectors such as professional services, manufacturing, and information & communications. Conversely, sectors like health and social services, as well as financial services, reported employment increases.

Business Sentiment and Hiring Outlook

Business sentiments have turned more cautious. In March 2025, only 40.5% of employers indicated plans to hire in the next three months, down from 46.3% in December 2024. Similarly, only 21.7% planned to raise wages, a significant drop from 31.6% previously.

Government Support Measures

To support the labour market, the Singapore government introduced measures in Budget 2025, including the SkillsFuture Workforce Development Grant and the SkillsFuture Jobseeker Support scheme. These initiatives aim to facilitate workforce transformation and provide temporary financial support to unemployed individuals seeking new employment opportunities.

Conclusion

While Singapore’s labour market shows resilience, the first quarter of 2025 highlights the challenges posed by global economic uncertainties. Employers and job seekers are advised to stay informed and adaptable as the economic landscape evolves.