Singapore labour market expands amidst 4.3% retrenchment expectations

Q4 job growth reaches 19,600.

Singapore's unemployment rates were low and broadly unchanged in December 2025, with the overall rate at 2.0%, resident unemployment at 2.9%, and citizen unemployment at 3.0%, according to preliminary data from the Ministry of Manpower.

Full-year unemployment rates for 2025 were also similar to levels seen over the previous two years.

Meanwhile, Singapore’s entire labour market expanded in 2025, with total employment rising by 57,300, exceeding the 44,500 increase recorded in 2024.

Employment growth in fourth quarter (Q4) 2025 reached 19,600, easing from the stronger-than-expected increase in the previous quarter but remaining higher than gains recorded in the first half of the year, the ministry said.

Resident employment growth was concentrated in Financial Services and Health & Social Services, whilst non-resident employment gains continued to be driven by Construction, largely comprising work permit holders.

Retrenchments remained stable in the Q4, with 3,600 employees retrenched, similar to the preceding quarter. 

The incidence of retrenchment stayed low at 1.5 per 1,000 employees, with most cases attributed to business reorganisation or restructuring, MOM reported.

"Looking ahead to Q1 2026, business expectations suggest that the labour market will continue to expand, albeit amidst increased hiring caution," the agency said in a press release.

The share of firms expecting to hire edged down to 43.3%, whilst the proportion planning wage increases rose to 26.4%, and the share expecting retrenchments increased to 4.3%, suggesting selective workforce adjustments rather than broad-based job cuts.