Singapore's labour market expanded, unemployment rates remained low in 2025: MOM

Singapore's labour market saw stronger growth in 2025 than the year prior, with unemployment and retrenchments remaining low, according to the Ministry of Manpower (MOM). 

Growth in the fourth quarter of 2025 also marked the 17th consecutive quarter of growth since the last quarter of 2021, the ministry said in their quarterly labour market report on Friday (March 20). 

Total employment expanded by 17,700 in the fourth quarter of 2025, marginally lower than the figures reported in MOM's advance release in January. 

For the full year of 2025, total employment grew by 55,500, an increase from 44,500 in 2024. 

In particular, resident employment growth was largely driven by the financial services and health and social services sectors while non-resident employment growth was driven by the continued hiring of work permit holders in construction.

According to MOM, labour demand remained firm in the last quarter of 2025, as the number of vacancies continued to exceed the number of unemployed people in December 2025. 

Throughout the quarter, job vacancies increased from 69,600 in September to 77,700 in December, raising the job vacancy to unemployed persons ratio from 1.50 to 1.58 over the same period.

Unemployment rates also remained low and stable in December 2025, while retrenchments were low and within non-recessionary norms.

For the full year of 2025, the incidence of retrenchment was 6.3 retrenched per 1,000 employees, said MOM. 

Additionally, the resident re-entry rate into employment within six months post-retrenchment improved slightly from 55.4 per cent in the third quarter to 57.4 per cent in the fourth quarter of 2025.

Looking ahead, MOM expects Singapore's labour market to continue expanding in 2026, especially against the improved GDP growth forecast for the year.

However, MOM also warned that the uncertain global economic environment may cause employers to take a more cautious approach to recruitment, and encouraged both employers and employees to take advantage of the various support schemes that are available.

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dana.leong@asiaone.com