Employment growth slows in Q1; unemployment rises

Resident employment continued to increase in health and social services and financial services.

Singapore's employment growth slowed in the first quarter of the year, rising by only 2,300, whilst the unemployment rate slightly rose, according to the Ministry of Manpower (MoM).

The employment increase for the quarter is lower than the 7,700 increase seen in Q4 2024 and the 3,200 rise in Q1 2024, indicating a slower growth in both resident and non-resident employment.

Resident employment continued to increase in health & social services and financial services. However, resident employment contracted in some outward-oriented sectors such as professional services, manufacturing, and information and communications.

Moreover, the resident unemployment rate increased to 2.9% between January and March. Meanwhile, the citizen unemployment rate held steady at 3.1% in March.

Despite this, the MoM noted that unemployment rates remained within the non-recessionary range.

The number of retrenchments fell to 3,300 in Q1 2025, down from 3,680 in Q4 2024.

The incidence of retrenchment remained low at 1.3 retrenched per 1,000 employees in Q1 2025.

Retrenchments were stable or lower across most sectors, with business reorganisation or restructuring remaining the top reason for retrenchments in Q1 2025.

Recession or downturn in the industry accounted for only a small proportion of retrenchments.

In December 2024, more employers indicated plans to hire and raise wages, compared to September 2024.

In March 2025, however, fewer employers expect to hire or raise wages in the next three months.

Although the labour market has continued to expand, MOM anticipates it will weaken in the future due to increased uncertainties in external growth prospects.