SINGAPORE: Singapore's labour demand slowed in the first quarter of 2025, amid economic uncertainty and escalating global trade conflicts, said the Ministry of Manpower (MOM) on Monday (Apr 28).
While the labour market has continued to expand, employment growth slowed in the first quarter compared to previous quarters, and the unemployment rate edged up slightly, MOM said in an advance release of its quarterly labour force report.
The moderation in labour demand was most evident in certain outward-oriented sectors, such as professional services, which recorded declines in resident employment, MOM said.
Retrenchments, however, declined in the first quarter compared to the previous one, the ministry added.
Earlier this month, Singapore downgraded its gross domestic product (GDP) growth forecast for 2025 to 0 per cent to 2 per cent, against the backdrop of slowing global trade and heightened economic uncertainty following US President Donald Trump's tariffs.
Total employment, excluding migrant domestic workers, grew by 2,300 in Q1 2025. This was lower than the growth of 3,200 observed in the same period last year, and was also below the seasonal growth of 7,700 seen in the last quarter of 2024.
"This reflects smaller increases in both resident and non-resident employment, compared to Q4 2024," said MOM.
Resident employment continued to rise in health and social services as well as financial services. However, resident employment contracted for outward-oriented sectors such as professional services, manufacturing, and information and communications.
Non-resident employment increased and was driven entirely by work permit holders in lower-skilled jobs, mainly in administrative and support services and community, social and personal services.
Unemployment rates also rose slightly in the first quarter of 2025 compared to the last quarter of 2024, with the resident unemployment rate increasing from 2.8 per cent in December 2024 to 2.9 per cent between January and March this year.
While the citizen unemployment rate held steady at 3.1 per cent in March compared to February, it was higher than the 2.9 per cent recorded in December 2024.
Despite this, the unemployment rates "remained within the non-recessionary range", said MOM.
The number of retrenchments fell to 3,300 in the first quarter of 2025, down from 3,680 in the fourth quarter of last year.
The incidence of retrenchment remained low at 1.3 per 1,000 employees, down slightly from 1.5 in the previous quarter.
"Retrenchments were stable or lower across most sectors, with business reorganisation or restructuring remaining the top reason for retrenchments in Q1 2025," said MOM.
"Recession or downturn in the industry accounted for only a small proportion of retrenchments."
The moderation of employment growth in the first quarter of 2025, particularly in some outward-oriented sectors, alongside a slight increase in unemployment, "mirrors the deterioration in Singapore’s economic outlook", said MOM.
Business sentiments have also turned more cautious.
"In December 2024, more employers indicated plans to hire and raise wages compared to September 2024," said MOM.
"In March 2025, however, fewer employers expect to hire or raise wages in the next three months.
"Whilst the labour market has continued to expand, MOM expects the labour market to soften going forward given greater uncertainties in external growth prospects."
In this year's Budget, the government introduced numerous measures to support employers and workers, MOM said.
The ministry encouraged employers and workers to tap into the "wide suite of initiatives and programmes to press on with transformation and upskilling, adapt to changes, and seize new opportunities".
For example, workers can use the CareersFinder feature on Workforce Singapore’s MyCareersFuture job portal to explore career pathways and training options, MOM said.
The newly launched SkillsFuture Jobseeker Support scheme also offers up to S$6,000 (US$4,562) in temporary financial assistance over six months to individuals who are involuntarily unemployed.
Earlier this month, the government set up a task force to study further measures to support businesses and workers amid current uncertainties.
The labour market report for the first quarter of 2025, which is due for release in mid-June, will provide a comprehensive assessment and more details of the labour market situation during the quarter, MOM added.
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While the labour market has continued to expand, employment growth slowed in the first quarter compared to previous quarters, and the unemployment rate edged up slightly, MOM said in an advance release of its quarterly labour force report.
The moderation in labour demand was most evident in certain outward-oriented sectors, such as professional services, which recorded declines in resident employment, MOM said.
Retrenchments, however, declined in the first quarter compared to the previous one, the ministry added.
Earlier this month, Singapore downgraded its gross domestic product (GDP) growth forecast for 2025 to 0 per cent to 2 per cent, against the backdrop of slowing global trade and heightened economic uncertainty following US President Donald Trump's tariffs.
EMPLOYMENT GROWTH
Total employment, excluding migrant domestic workers, grew by 2,300 in Q1 2025. This was lower than the growth of 3,200 observed in the same period last year, and was also below the seasonal growth of 7,700 seen in the last quarter of 2024.
"This reflects smaller increases in both resident and non-resident employment, compared to Q4 2024," said MOM.
Resident employment continued to rise in health and social services as well as financial services. However, resident employment contracted for outward-oriented sectors such as professional services, manufacturing, and information and communications.
Non-resident employment increased and was driven entirely by work permit holders in lower-skilled jobs, mainly in administrative and support services and community, social and personal services.
Unemployment rates also rose slightly in the first quarter of 2025 compared to the last quarter of 2024, with the resident unemployment rate increasing from 2.8 per cent in December 2024 to 2.9 per cent between January and March this year.
While the citizen unemployment rate held steady at 3.1 per cent in March compared to February, it was higher than the 2.9 per cent recorded in December 2024.
Despite this, the unemployment rates "remained within the non-recessionary range", said MOM.
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FALL IN RETRENCHMENTS, CAUTIOUS BUSINESS SENTIMENTS
The number of retrenchments fell to 3,300 in the first quarter of 2025, down from 3,680 in the fourth quarter of last year.
The incidence of retrenchment remained low at 1.3 per 1,000 employees, down slightly from 1.5 in the previous quarter.
"Retrenchments were stable or lower across most sectors, with business reorganisation or restructuring remaining the top reason for retrenchments in Q1 2025," said MOM.
"Recession or downturn in the industry accounted for only a small proportion of retrenchments."
The moderation of employment growth in the first quarter of 2025, particularly in some outward-oriented sectors, alongside a slight increase in unemployment, "mirrors the deterioration in Singapore’s economic outlook", said MOM.
Business sentiments have also turned more cautious.
"In December 2024, more employers indicated plans to hire and raise wages compared to September 2024," said MOM.
"In March 2025, however, fewer employers expect to hire or raise wages in the next three months.
"Whilst the labour market has continued to expand, MOM expects the labour market to soften going forward given greater uncertainties in external growth prospects."
Related:
In this year's Budget, the government introduced numerous measures to support employers and workers, MOM said.
The ministry encouraged employers and workers to tap into the "wide suite of initiatives and programmes to press on with transformation and upskilling, adapt to changes, and seize new opportunities".
For example, workers can use the CareersFinder feature on Workforce Singapore’s MyCareersFuture job portal to explore career pathways and training options, MOM said.
The newly launched SkillsFuture Jobseeker Support scheme also offers up to S$6,000 (US$4,562) in temporary financial assistance over six months to individuals who are involuntarily unemployed.
Earlier this month, the government set up a task force to study further measures to support businesses and workers amid current uncertainties.
The labour market report for the first quarter of 2025, which is due for release in mid-June, will provide a comprehensive assessment and more details of the labour market situation during the quarter, MOM added.
Continue reading...