Ministry warns of further hiring caution from employers amid global economic uncertainty
Singapore reported slower total employment growth in the first quarter of 2026, according to the Ministry of Manpower (MOM), which warned of further hiring caution among employers amid global economic uncertainty.
MOM's latest Labour Market Report revealed that total employment increased by 9,400 in the first quarter, slightly slower than the 17,700 increase recorded in the fourth quarter of 2025.
"The moderation was driven mainly by slower non-resident employment growth," MOM's report read. "At the same time, resident employment growth strengthened from 3,100 in 4Q 2025 to 5,400 in 1Q 2026."
Singapore's Administrative and Support Services saw resident employment gains, while its Financial & Insurance Services sector saw resident employment declines.
The declines were largely concentrated among self-employed persons in the insurance and related services segment, according to the report.
"Firms may be prioritising leaner but permanent headcount, while workers gravitate towards stability amid uncertainty," the report read.
MOM warned that further labour demand moderation is expected in Singapore amid heightened global economic tensions.
A proposed 12.5% tariffs stemming from the alleged importation of forced labour-made goods to the US remains hanging in Singapore's future. The US is set to debate on the proposed actions on July 7.
"Looking ahead, labour market conditions are expected to remain resilient, although firms may adopt a more cautious approach in hiring and wage increases amid heightened global economic uncertainty and geopolitical tensions," MOM said.
"Labour demand is likely to moderate if external conditions weaken further and elevated global input costs persist."
Unemployment, retrenchments in Singapore
Unemployment in Singapore remains low and stable in March 2026, with the overall rate at two per cent, according to MOM's report.
The resident unemployment rate is at 2.9%, while the citizen unemployment rate is at 3.1%, broadly unchanged from the previous quarters.
For retrenchments, Singapore saw a slight increase to 3,830 in the first quarter of 2026, up from the 3,690 in the last quarter of 2025.
"The increase in retrenchments was concentrated in external-oriented sectors, such as Manufacturing, Financial Services, and Professional Services," the report read.
Despite more retrenchments recorded, MOM maintained that the country's labour market remained resilient.
The six-month re-entry rate among retrenched residents increased for the second consecutive quarter to 60.7%, according to the ministry.
"Improvements were observed among PMETs, degree holders and younger residents aged below 30, suggesting that retrenched workers continued to find employment within a reasonable timeframe," the report read.
