PUBLISHED ONApril 30, 2026 3:07 AMBYSean LerSingapore's labour market grew at a slower pace in the first quarter of 2026 as compared to the previous quarter, reflecting seasonal effects and a step-down from a high base, the Ministry of Manpower (MOM) said on Thursday (April 30).
In an advance release of its quarterly labour force report, the ministry said total employment grew by 5,000 in the first quarter of 2026, down from 17,700 in the previous quarter.
It explained that the moderation does not point to a weakening in the labour market, but reflects seasonal effects such as Chinese New Year and a step-down from a high base.
Seasonally adjusted, employment growth is estimated to be around 9,200 in the first quarter, which is still lower than the last quarter, but higher than the 5,000 in the first quarter of 2025.
Seasonal adjustments, using analytical techniques to estimate and remove seasonal and calendar effects, are carried out by national statistical offices around the world so as to reveal the true underlying movement of an economic time series.
According to the Ministry of Trade and Industry's (MTI) advance estimates for the first quarter of 2026, the Singapore economy grew by 4.6 per cent, down from the 5.7 per cent recorded in the previous quarter.
Resident employment growth was concentrated in the transportation and storage, administrative and support services sectors, while non-resident employment growth continued to be driven by construction, but at a slower rate than in the last quarter.
Unemployment rates stayed low at 2.1 per cent overall in March 2026, similar to the 2 per cent in December 2025.
Resident unemployment stood at 2.9 per cent, while citizen unemployment was at 3.1 per cent.
There were a total of 3,700 retrenchments — or 1.5 retrenched per 1,000 employees — in the first quarter of 2026, comparable to the 3,500 in the previous quarter.
The majority of retrenchments were due to business reorganisation or restructuring, MOM said.
Employment growth is expected to remain tight in the second quarter, with businesses being cautious in hiring and wage plans amid increased economic uncertainty due to geopolitical tensions.
MOM said its business expectation polls showed that the proportion of firms expecting to hire in the next three months declined from 54.6 per cent in February 2026 to 44.6 per cent in March 2026.
Over the same period, firms planning wage increases have also fallen from 39.3 per cent to 25.4 per cent.
"Although there are early signs of stabilisation in April, expectations remain below pre-crisis levels in February. This suggests a more measured pace of hiring, with potential softening if external conditions weaken," the ministry said.
It urged businesses to take proactive action to transform their workforce and for workers to undergo upgrading so that they can be ready to seize new opportunities.
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