Labour market remains resilient in Q2

Total employment rose by 10,400.

Singapore’s labour market held steady in the second quarter of 2025 amidst ongoing economic growth, as per the Ministry of Manpower.

Total employment rose by 10,400, recovering from weaker gains in the first quarter.

Resident jobs expanded in health and social services, whilst some outward-oriented sectors, such as professional services and information & communications, showed early signs of slowing.

Non-resident employment grew, driven by work permit holders in construction and transport roles.

Unemployment rates stayed low in June 2025, with overall unemployment at 2.0%, resident unemployment at 2.8%, and citizen unemployment at 2.9%. Long-term resident unemployment remained stable at 0.9%.

Job vacancies fell slightly from 81,100 in March to 76,900 in June, with the vacancy rate dropping from 3.2% to 2.9%. Despite this, vacancies still outnumber jobseekers, with a ratio of 1.35.

Retrenchments remained low at 1.4 per 1,000 employees, slightly down from 3,590 in 1Q to 3,540 in teh second quarter.

Residents returning to work within six months post-retrenchment dropped to 56.3%, mainly amongst non-PMETs. Temporary layoffs and short work-week arrangements remained minimal at 620.

In August 2025, the Ministry of Trade and Industry (MTI) revised Singapore’s GDP growth forecast for 2025 upward, from “0.0%–2.0%” to “1.5%–2.5%.”

Despite this revision, growth is expected to moderate in the second half of the year, following a 4.3% year-on-year increase in the first half.

Global economic uncertainty is expected to weigh on hiring and wages, particularly in outward-oriented sectors.

Still, the labour market is projected to remain resilient, with firms likely to manage slower growth by limiting new hires, adopting short work-week arrangements, and moderating wage increases. Retrenchment intentions remain low but have edged upward slightly.

The government continues to support both employers and workers through programmes such as Career Conversion Programmes, Mid-Career Pathways, Support for Job Redesign, SkillsFuture Enterprise Credit, CareersFinder, career coaching, SkillsFuture training, and the SkillsFuture Jobseeker Support scheme offering up to $6,000 over six months for unemployed individuals.

The Singapore Economic Resilience Taskforce is also assisting fresh graduates through the GRIT programme, expanding career guidance services, and enhancing HR professional development, whilst monitoring global developments and standing ready to support businesses and workers through ongoing uncertainties.