Unemployment, retrenchments stable despite global uncertainty
Employment across Singapore expanded in the second quarter of 2025, according to government data, as unemployment and retrenchments remained stable amid global uncertainty.
The Ministry of Manpower said preliminary data shows Singapore's labour market is "resilient" in the second quarter.
Total employment rose by 8,400 in Q2, higher than the 2,300 in the first quarter, but remains lower than the 11,300 in the second quarter of 2024.
Resident employment went up in the Financial Services and Health and Social Services sectors, according to MOM.
Some outward-oriented sectors, such as Professional Services and Information and Communications, registered declines amid economic headwinds.
"Resident employment also declined in Retail Trade, as employers continued to release workers after the seasonal hiring in 4Q 2024 for year-end festivities," MOM's report read.
Non-resident employment also expanded, strongly fuelled by work permit holders, primarily in the Construction sector.
"Increases in non-resident employment were also seen in Administrative & Support Services and Health & Social Services," the report read.
Unemployment, retrenchments stable
Meanwhile, Singapore's unemployment rate rose slightly in June 2025 to 2.1%, a slight increase from May (1.9%) and April (2.0%).
"Unemployment rates have seen short-term fluctuations but remained within the non-recessionary range," MOM said in a media release.
Retrenchments also remained stable at 3,500 in the second quarter, a slight dip from the 3,590 in the first quarter of the year.
Incidence of retrenchment also declined slightly to 1.4 retrenched per 1,000 employees, down from the previous quarter's 1.5.
"Retrenchments were either stable or lower across most sectors, with business reorganisation or restructuring remaining the top reason for retrenchments in 2Q 2025," the report read.
The findings come in the wake of global economic uncertainty, with US President Donald Trump's tariffs expected to make ripples in the economies across the world.
MOM said this uncertainty is expected to influence hiring or wage growth, particularly in outward-oriented sectors.
"MOM encourages employers and workers to tap on the wide suite of initiatives and programmes to press on with transformation and upskilling, adapt to changes, and seize new opportunities," it said.
