Singapore saw stronger job growth in 2025, but firms cautious about hiring in Q1 2026: MOM

Singapore's labour market saw stronger growth in 2025 as compared to 2024, but hiring concerns in the first quarter of 2026 remain, the Ministry of Manpower (MOM) said.

In an advance release of its quarterly labour market report on Thursday (Jan 29), the ministry said the labour market expanded in the fourth quarter of 2025.

Cumulatively, total employment growth last year was 57,300, compared to the 44,500 in 2024.

Resident employment growth was concentrated in the financial services and health and social services sectors.

Total employment grew by 19,600 in the last quarter of 2025, supported by seasonal year-end hiring gains in retail trade and administrative and support services.

While growth moderated from the stronger-than-expected growth in the third quarter, it exceeded growth in the same periods from 2024 (7,700) and 2023 (3,900).

Unemployment, retrenchments remain low

The ministry also noted that unemployment rates remained "broadly stable" throughout the year — at two per cent — similar to those seen over the past two years.

Retrenchment also remained low, with a majority occurring due to business reorganisation or restructuring, said MOM.

In 2025, retrenchment increased slightly to 6.2 per 1,000 employees from 5.9 in 2024, though it remains around the pre-recessionary average.

Labour market relatively tight in Q1

Looking ahead, MOM said that it expects a continued expansion in the labour market, albeit at a slower pace as firms take a more cautious stance towards hiring.

The labour market conditions are expected to remain relatively tight, and MOM’s business expectation polls showed that hiring expectations were generally lower across most sectors.

At the same time, a larger share of firms expect to raise wages over the same period — 26.4 per cent in December, up from 19.3 per cent in September — pointing to improving business outcomes and continued competition for workers in certain areas. 

The proportion of firms expecting to retrench workers also remains low at 4.3 per cent, suggesting selective workforce adjustments rather than broad-based job cuts, said MOM.

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dana.leong@asiaone.com