Singapore's labour market remained resilient in the first quarter (Q1) of the year with employment expanding for the 18th consecutive quarter since fourth quarter of 2021.
Total employment rose by 9,400 driven — a gain of 5,400 — in the first quarter of this year, up from 3,100 from the previous quarter, according to the Ministry of Manpower’s (MOM) finalised data in its Labour Market Report released on Monday (June 15).
Resident employment gains —from 3,100 in 4Q 2025 to 5,400 to 1Q 2026 — were led by administrative and support services, and transportation and storage while non-resident employment growth was supported by construction and manufacturing.
Unemployment remained low and stable in March 2026 with the incidence of retrenchment too remaining low. Retrenchments totalled 3,830 or 1.6 per 1,000 employees in 1Q 2026, a slight increase from 4Q 2025 at 3,690 or 1.5 per 1,000 employees.
The number of job vacancies fell from 77,700 in December 2025 to 73,300 in March 2026.
This compares with 80,100 vacancies in March 2025.
The decline was driven mainly by reduced job openings for non-professionals, managers, executives and technicians noted the ministry.
The labour market is expected to remain tight and continue to expand for the next quarter of 2026.
Amid increased economic uncertainty due to geopolitical tensions, businesses are expected to remain cautious in their hiring and wage plans.
This points to a more measured pace of hiring and emerging caution among firms, with potential softening should external conditions weaken.
@asiaone Amidst global uncertainty and what artificial intelligence could mean for jobs, Singapore saw "encouraging signs" in its labour market in the first quarter of 2026 - with employment rising from about 3,000 in the previous quarter, to almost 5,000, said Manpower Minister Dr Tan See Leng on Monday (June 15). #sgnews #Singapore #Workers #Jobs #Employment ♬ original sound - AsiaOne
Manpower Minister Dr Tan See Leng cited the MOM’s survey which found firms were three times more likely to redesign jobs and work processes than reduce headcount for hiring, adding that "close to 400 individuals benefited from Workforce Singapore’s Career Conversion Programme to reskill workers or redesign roles, including those with AI [artificial intelligence] components".
He met with the media following his visit to Star Furniture on Monday, where the furniture company has redesigned job roles and incorporated AI into their warehouse management system.
"This is exactly why helping workers to pick up new skills and adapt to changing job requirements matters so much," Dr Tan said.
AI adoption rates were highest in digitally intensive and knowledge-based sectors such as information and communications, which stood at 74.1 per cent, followed by professional services at 57.5 per cent and financial and insurance services at 56.4 per cent, according to MOM's survey.
MOM said: "These findings suggest that AI is currently having a greater impact on job redesign and work processes than on broad-based job displacement."
With 1,600 AI-related courses available on MySkillsFuture, Dr Tan not only assured Singaporeans that the government will continue to provide support as he also "encourage[s] every Singaporean to take charge of their own AI journey".
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helmy.saat@asiaone.com
