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Employment growth in Singapore strengthens in 2025, retrenchments remain low: Advance estimates

LaksaNews

Myth
Member

UNEMPLOYMENT RATES​


MOM said that the overall unemployment rate of 2.0 per cent in December 2025 was broadly unchanged from September 2025, which was also at 2.0 per cent.

Resident and citizen unemployment rates were at 2.9 per cent and 3 per cent in December 2025 respectively, from 2.8 per cent and 3.1 per cent in September.

The full-year unemployment rate for the year remained low at 2.0 per cent overall, broadly similar to those seen over the past two years and "reflecting the broadly stable unemployment rates throughout 2025", said MOM.

OUTLOOK​


In its outlook for the first quarter of 2026, MOM said that business expectations suggest continued expansion for the labour market, albeit amid increased hiring caution.

The share of firms expecting to hire in the next three months edged down slightly from 44.1 per cent in September 2025 to 43.3 per cent in December 2025.

"At the same time, a larger share of firms expects to raise wages over the same period, rising from 19.3 per cent to 26.4 per cent, pointing to improving business outcomes and continued competition for labour in certain areas."

While the share of firms expecting to retrench workers also increased from 2.3 per cent to 4.3 per cent over the same period, it remains low, suggesting selective workforce adjustments rather than broad-based job cuts, the ministry added.

"While the labour market continues to expand and remain tight, employers and workers should continue to adapt and transform so as to seize new opportunities," said MOM.

The labour market report for the fourth quarter of 2025 will be released in mid-March 2026, it said.

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