Singapore's labour force participation rate drops to 67.9% due to ageing population

The proportion of Singapore residents working or actively looking for jobs has declined for the fourth consecutive year due to an ageing population, said the Ministry of Manpower (MOM) on Friday (Nov 28). 

Singapore's labour force participation rate, which accounts for residents aged 15 and above, fell to 67.9 per cent in 2025, said the ministry in its annual Labour Force in Singapore Advance Release. 

The labour force participation rate has been declining since it peaked at 70.5 per cent in 2021. It fell to 70 per cent in 2022, 68.6 per cent in 2023 and 68.2 per cent in 2024. 

MOM attributed the overall decline to Singapore's ageing population. 

More seniors still working

Singapore's labour force participation rate will continue declining "until we come to a stage where our population ageing stabilises," said Ang Boon Heng, director of MOM's manpower research and statistics department. 

"What's balancing all of this that we're not seeing a big decline (in labour force participation rate), is that it reflects the efforts to actually bring people back to the labour force," he added. 

MOM said that the labour force participation rates across most five-year age groups rose, and that the largest increases were seen among seniors. The proportion of seniors in the labour force aged 60 and above rose from 12.3 per cent in 2015 to 19.3 per cent in 2025. 

The female labour force participation rate has also risen significantly across age groups, reflecting their rising educational profile and collective efforts aimed at supporting them at work, said MOM. 

Compared with 2015, the female labour force participation rate for those aged 25 to 64 rose to 80.5 per cent, up from 74.1 per cent. 

The ministry also noted that Singapore's overall labour force participation rate remains one of the highest among countries in the Organisation for Economic Co-operation and Development (OECD), where the average is 62.8 per cent. 

Unemployment rates low

Meanwhile, unemployment rates across occupational groups remained stable and low in 2025, said MOM. 

The unemployment rate for Professionals, Managers, Executives and Technicians (PMETs) held broadly steady at 2.8 per cent, while that of non-PMETs declined to 2.8 per cent. 

Additionally, the proportion of employees in permanent roles rose to a record high of 90.8 per cent, with increases seen in most industries. 

Real income grew

Real incomes for workers at both the 20th percentile and the median also grew in 2025, said MOM. 

Adjusting for inflation, real incomes grew by 3.8 per cent year-on-year for the 20th percentile and 4.3 per cent for the median. 

The ministry also noted that the income gap between the two groups had narrowed. 

In 2025, the proportion of residents who switched jobs in the past year eased to 6.2 per cent, down from a high of 10.1 per cent in 2022 post-Covid. 

The real income for a majority of these residents also increased, suggesting continued opportunities for upward mobility. 

3.1% of residents have overseas experience

In its report, MOM also shared statistics on residents with overseas work experience, a new area of study introduced in 2025. 

The new data set serves to provide MOM with a better understanding of the resident labour force as it strengthens its efforts to broaden the international exposure and leadership readiness of the local workforce. 

3.1 per cent of residents in the labour force in 2025 had worked overseas full-time for a stint of at least six months, said MOM, adding that overseas work experience was most prevalent in mid-career workers in their 40s and 50s, who started their first overseas stint in their mid-20s. 

Those with overseas work experience were also more likely to be residents currently holding managerial positions, in addition to a minimum monthly salary of $30,000. 

The report also found that these residents with overseas work experience commonly worked in Mainland China, the United States and Malaysia. 

[[nid:725142]]

dana.leong@asiaone.com