Singapore’s economy grew by about 2.9 % year-on-year in 3Q 2025, moderating from a 4.5% growth in 2Q. Despite a slowing economy, Singapore’s labour market showed remained upbeat in 3Q2025.
According to the Ministry of Manpower’s (MOM) latest Labour Market Advance Release, Singapore’s labour market is still expanding. While sectors, such as healthcare and social services, continued to add jobs, some outward-facing sectors experienced softer hiring sentiment due to global demand and trade conditions.
At the same time, employers appear to be taking a more cautious stance on wage increases, suggesting that businesses are balancing manpower needs with cost considerations.
Here are 4 trends that the report highlighted for 3Q2025.
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#1 Total Employment Growth Was Significant
Singapore’s labour market delivered a stronger-than-expected performance in the third quarter of 2025. Total employment rose by 24,800 in 3Q 2025 – supported by increases in both resident and non-resident employment.
Employment gains were concentrated in sectors such as Financial Services and Health & Social Services. However, growth in outward-oriented sectors like Information & Communications, Professional Services and Wholesale Trade was weaker — indeed, in some of those sectors resident employment contracted. On the non-resident side, increases were driven mainly by work permit holders in Manufacturing and Construction.
These patterns reflect a labour market that remains resilient, even though the employment gains may be unevenly distributed across sectors.
#2 Unemployment Remains Very Low In Singapore
The unemployment rate in September 2025 held firm at 2.0% overall, with resident unemployment at 2.8 % and citizen unemployment at 3.0%.
For context, these figures are within Singapore’s pre-pandemic unemployment range – which has become an indicator for Singapore’s economic performance.
During the pre-pandemic years between 2015 and 2019, the overall unemployment hovered around 1.8% to 2.3 %, residents 2.5% to 3.3 %, and citizens 2.7% to 3.5%.
#3 Retrenchments Stay Under Control
A key indicator of a labour market’s health is its retrenchment risk. In 3Q2025, the number of retrenchments in Singapore stood at 3,500, equivalent to 1.4 retrenchments per 1,000 employees. This is virtually unchanged from the previous quarter, at 3,540, at the same incidence.
Across most sectors, retrenchments either stayed flat or declined, and the majority of cases continue to stem from business reorganisation or restructuring, rather than broad-based slides in demand. This provides reassurance that the employment gains are not being offset by rising job losses for now.
#4 Mixed Hiring & Wage Expectations
Looking ahead, hiring sentiment has improved modestly. The proportion of firms that expect to hire more employees in the next three months rose slightly to 44.1%, from 43.7%.
However, the picture is similarly less upbeat for outward‐oriented industries. For example, in the Information & Communications, Financial & Insurance Services sectors, where hiring intentions remain weaker.
At the same time, plans for wage increases are trending down. Only 19.3 % of firms indicate plans to raise wages in the next quarter, a drop from 22.4 % previously. While employment may be growing, wage momentum may be moderating, likely reflecting cost pressures, tighter labour supply, and structural constraints in some sectors.
Sectoral Unevenness Potentially Highlighting Caution On The Horizon
Despite the overall positive headline numbers, the pace and distribution of growth vary across sectors. Growth is stronger in domestically-oriented sectors like health and social services, while outward-oriented sectors that rely on global trade or professional services are seeing weaker growth or even contractions in resident employment.
For policymakers, businesses and workers, this means the focus remains not just on overall numbers, but on sectoral dynamics. Upskilling and reskilling should remain key priorities.
Singapore’s labour market continued to show resilience in the third quarter of 2025, even as global economic conditions remain uncertain.
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