Employment growth slows in Q1 as job vacancies dip

Retrenchments inched up but remained within non-recessionary norms, whilst unemployment stayed low.

Total employment growth moderated in the first quarter of 2026, even as the labour market continued to expand amid sustained economic growth.

Total employment rose by 9,400 in Q1, marking the 18th consecutive quarter of growth since Q4 2021, according to the Ministry of Manpower’s (MOM) Labour Market Report. This was slower than the 17,700 increase recorded in the previous quarter.

The expansion was supported by stronger resident employment gains, which rose to 5,400 from 3,100 in Q4 2025. Resident employment growth was led by Administrative & Support Services and Transportation & Storage.

Non-resident employment growth, meanwhile, moderated, with gains mainly supported by Construction and Manufacturing.

Unemployment remained low and stable in March. The overall unemployment rate stood at 2.0%, whilst resident and citizen unemployment rates were at 2.9% and 3.1%, respectively. The resident long-term unemployment rate also remained unchanged at 0.9%.

Job vacancies declined to 73,300 in March from 77,700 in December 2025, though labour demand remained firm. The number of vacancies continued to exceed the number of unemployed persons, with a ratio of 1.46.

Retrenchments rose slightly to 3,830, or 1.6 per 1,000 employees, in Q1 from 3,690, or 1.5 per 1,000 employees, in the previous quarter. MOM said the incidence of retrenchment remained low and within non-recessionary norms.

The increase in retrenchments was mainly seen in external-oriented sectors such as Manufacturing, Financial Services, and Professional Services. Retrenchments continued to be driven largely by firm restructuring or reorganisation.

Re-employment outcomes improved, with the resident re-entry rate into employment within six months after retrenchment rising for the second consecutive quarter to 60.7% in Q1, from 57.4% in Q4 2025.

MOM expects labour market conditions to remain resilient, but warned that firms may become more cautious in hiring and wage increases amid heightened global economic uncertainty and geopolitical tensions.
Labour demand may moderate if external conditions weaken further and elevated global input costs persist, the ministry said.

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