PUBLISHED ONDecember 11, 2025 3:39 AMBYDana LeongThe labour market in Singapore was buoyed by continued economic growth and expanded in the third quarter of 2025, said the Ministry of Manpower (MOM) on Thursday (Dec 11).
Total employment grew while unemployment and retrenchments remained low, according to the ministry's latest labour market report.
Despite the positive developments, the ministry remained cautious, citing elevated economic uncertainties that will continue to weigh on firms and ultimately lead to a moderation of labour demand.
The labour market extended employment growth for the 16th straight quarter since 2021, said MOM.
Total employment grew by 25,100 in the third quarter of the year, up from 10,400 in the previous quarter.
In particular, the ministry found that resident employment was boosted by the financial and insurance services, and the health and social services sector.
On the other hand, non-resident employment grew mainly in construction and manufacturing.
The ministry also noted that the overall unemployment rate remained low at 2 per cent in September.
Unemployment rates for young residents aged below 30 also declined from 5.7 per cent in June to 5.5 per cent in September, with MOM highlighting that the increase in long-term unemployment among younger residents is unlikely to be driven by fresh graduates.
In September 2025, the employment rate of the 2025 graduating cohort improved to 69.9 per cent, up from 51.9 per cent in June 2025.
MOM also found that the incidence of retrenchments remained low in the third quarter of 2025.
There were a total of 3,670 retrenchments for the quarter, representing 1.6 retrenchments per 1,000 employees.
According to the ministry, retrenchments were concentrated in growth sectors, such as financial services, professional services and information and communications.
Restructuring remained the most common reason cited for retrenchments, while poor business and concerns regarding high costs were less common.
MOM also found that more employers were placing their employees on shorter work weeks or temporary layoffs instead of retrenching them.
The number of job vacancies eased slightly from 76,900 in June to 69,200 in September 2025 and is moderating from previous highs in 2022, said MOM.
The downward trend in job vacancies particularly reflects a progressive easing from Singapore's "exceptionally tight labour market" between the second half of 2021 and 2022.
The decline in job vacancies was broad-based across most sectors, though financial services and health and social services saw declines in job vacancies as a result of employment growth.
"Job vacancies have eased, and while the job vacancy to unemployed persons ratio remains above long-term norms, labour market tightness has moderated from its post-pandemic peak," said the ministry, which added that the moderation in job vacancies in 2025 was driven not by rising retrenchments or unemployment, but by reduced churn and slower hiring.
Looking ahead, MOM said downside risks remain in the global economy despite improved conditions since the first half of 2025.
Business expectations show that firms are more cautious in their intentions to hire or raise wages in the coming three months, especially considering how the proportion of firms planning redundancies increased from 1.9 per cent in June to 2.3 per cent in September 2025.
"Going forward, we expect employment and wage growth to moderate," said the ministry, adding that outward-oriented firms continue to show relatively stronger hiring intent, although they are less likely than domestic-oriented firms to raise wages.
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dana.leong@asiaone.com
