Labour Market Report 4Q 2025

Main Findings

The labour market continued to expand in 2025, supported by economic growth and sustained labour demand.¹ Unemployment and retrenchments remained low.   

2 The labour market expanded in 4Q 2025 and over the full year of 2025. Total employment expanded by 17,700 in 4Q 2025, marking the 17th consecutive quarter of growth since 4Q 2021.  For the full year of 2025, total employment grew by 55,500, an increase from the 44,500 in 2024. In 2025, resident² employment growth (11,600) was driven largely by Financial Services and Health & Social Services, while non-resident employment growth (43,900) was driven by the continued hiring of Work Permit holders in Construction. 

3 Unemployment rates remained low and stable in December 2025 (overall: 2.0%; resident: 2.9%; citizen: 3.0%). The resident long-term unemployment rates similarly remained low and stable at 0.9% in December 2025.

4 Labour demand remained firm. The number of vacancies continued to exceed the number of unemployed persons in December 2025. Job vacancies increased from 69,600 in September 2025 to 77,700 in December 2025, raising the job vacancy to unemployed persons ratio from 1.50 to 1.58 over the same period.

5 Retrenchments (3,690, or 1.5 retrenched per 1,000 employees in 4Q 2025) were likewise low and within non-recessionary norms.³ For the full year of 2025, the incidence of retrenchment was 6.3 retrenched per 1,000 employees (or 14,490 retrenched employees). The resident re-entry rate into employment within 6 months post-retrenchment improved slightly from 55.4% in 3Q 2025 to 57.4% in 4Q 2025. 

Labour Market Outlook

6 In February 2026, Ministry of Trade and Industry (MTI) upgraded Singapore’s GDP growth forecast for 2026 from “1.0% to 3.0%” to “2.0% to 4.0%”. The revised GDP forecast was due to the global economy outperforming expectations, with most major economies turning in stronger than expected growth in 4Q 2025. Against this backdrop, the 2026 growth outlook for outward-oriented sectors has improved since November 2025 and are projected to register healthy growth.

7 We expect the labour market to continue expanding in 2026 given the more positive economic outlook, but the global economic environment remains uncertain and dynamic. Whilst sentiment polls on hiring and wage expectations indicate improved business sentiments; employers may continue to take a more cautious approach to recruitment amidst uncertainties.

Conclusion

8 In view of the headwinds in the global economy, it is important for employers and workers to take proactive action to transform and be ready to seize new opportunities. The Government provides support for employers and workers:

i. For employers: Employers can tap on schemes to reskill and upskill their employees and new hires, such as Career Conversion Programmes. The new SkillsFuture Workforce Development Grant (Job Redesign+) provides funding support of up to 70% for workforce transformation and job redesign project costs, capped at $150,000 per enterprise, with higher support levels provided for Small and Medium Enterprises (SMEs). 

ii. For workers: Through Career Health SG, we empower Singaporeans to take proactive steps to improve their employability and access better job opportunities. Singaporeans can make use of career coaching and guidance services provided by WSG and NTUC’s Employment and Employability Institute to navigate the labour market and make career plans. They can also use their SkillsFuture Credit to cover their out-of-pocket fees for eligible training programmes. 

iii. For fresh graduates: The GRaduate Industry Traineeships (GRIT) provides fresh graduates with an alternative entry point into the workforce that enables them to acquire industry-relevant skills and experience. GRIT applications are now open for the 2026 graduating cohort. Applications for GRIT can be made through MyCareersFuture and Careers@Gov. The Overseas Markets Immersion Programme (OMIP) has been extended to newly hired young professionals, providing funding support for employers to send them on overseas work stints to gain valuable exposure to international markets. 

iv. For the involuntarily unemployed: The SkillsFuture Jobseeker Support scheme launched in April 2025 provides temporary financial support of up to $6,000 over six months to eligible involuntarily unemployed individuals who are engaged in active job search.

For More Information

9 The “Labour Market Report 4Q 2025” is released by the Manpower Research and Statistics Department, Ministry of Manpower. The report and technical notes on the various indicators are available at https://stats.mom.gov.sg.