But findings suggest that employers will be cautious about hiring in the first few months of 2026
Singapore's labour market expanded in the full year of 2025, according to new government data, but business expectations indicate that employers are entering 2026 with increased hiring caution.
The advance release of Singapore's Labour Market Report showed that total employment growth hit 57,300 for the full year of 2025, stronger than the previous year's 44,500.
Resident employment growth was concentrated in Financial Services and Health and Social Services, while non-resident growth was driven by Construction, largely comprising Work Permit Holders.
Unemployment and retrenchments
The unemployment rate remained "broadly stable" throughout 2025 at two per cent, with resident unemployment at 2.8% and citizen unemployment reaching three per cent.
Incidence of retrenchments, however, climbed to 6.2 retrenchments per 1,000 employees, according to the report. This is higher than the previous year's 5.9 retrenched per 1,000 employees.
The report attributed the increase to retrenchments in the Transportation and Storage and the Financial Services sectors.
"The increase largely reflects higher retrenchments earlier in the first three quarters of 2025 compared to the preceding year," the Ministry of Manpower said in a statement.
"Throughout 2025, business reorganisation or restructuring remained the primary reason for retrenchments."
Employment outlook for 2026
Meanwhile, the report predicts that the labour market will likely continue expanding in the first quarter of 2026, even with increased hiring caution among employers.
According to the findings, the share of employers planning to hire in the first months of 2026 declined to 43.3%, down from the 44.1% recorded in September.
The data echoes the cautious hiring sentiment shared by employers in the latest ManpowerGroup Employment Outlook, where only 32% of employers plan to increase their headcount and 46% plan to keep staffing levels unchanged.
On retrenchments, the government's findings revealed that 4.3% of employers are expecting to retrench staff in the first months of 2026, slightly higher than the 2.3% in the previous quarter.
"It remains low, suggesting selective workforce adjustments rather than broad-based job cuts," MOM said.
