Labour Market Report 1Q 2026

Main Findings

Singapore's labour market continued to expand in 1Q 2026, alongside sustained economic growth¹. Total employment increased by 9,400, marking the 18th consecutive quarter of growth since 4Q 2021². The expansion was underpinned by stronger resident³ employment gains of 5,400 in 1Q 2026, up from 3,100 in the previous quarter, even as non-resident employment growth moderated. Resident employment gains were led by Administrative & Support Services and Transportation & Storage while non-resident employment growth was supported by Construction and Manufacturing.

2 Unemployment remained low and stable in March 2026, with the overall rate at 2.0%, while the rates for residents and citizens were 2.9% and 3.1% respectively⁴. The resident long-term unemployment rate also held steady at 0.9%.

3 The incidence of retrenchment too remained low, within non-recessionary norms. Retrenchments totalled at 3,830 or 1.6 per 1,000 employees in 1Q 2026, a slight increase from 4Q 2025 (at 3,690 or 1.5 per 1,000 employees). They continued to be driven largely by firm restructuring or reorganisation. The increase in retrenchments was mainly in external-oriented sectors such as Manufacturing, Financial Services and Professional Services. The resident re-entry rate into employment within 6 months post-retrenchment improved for the second consecutive quarter from 57.4% in 4Q 2025 to 60.7% in 1Q 2026.

4 Labour demand remained firm with 73,300 vacancies in March 2026. The number of job vacancies continued to exceed the number of unemployed persons at 1.46.

Labour Market Outlook

5 Looking ahead, labour market conditions are expected to remain resilient, although firms may adopt a more cautious approach in hiring and wage increases amid heightened global economic uncertainty and geopolitical tensions. Labour demand is likely to moderate if external conditions weaken further and elevated global input costs persist. MOM will continue to work closely with employers, workers and training partners to help Singaporeans seize emerging opportunities and adapt to changing labour market conditions.

Conclusion

6 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 will continue to support employers and workers:

1. For employers: Employers can tap on schemes to reskill and upskill their employees and new hires. This includes the Career Conversion Programmes, and the new SkillsFuture Workforce Development Grant (Job Redesign+) which 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).

    

2. For workers: Through Career Health SG, Singaporeans are empowered 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 (e2i) 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. To prepare for the AI transition, Singaporeans can tap on national initiatives such as SkillsFuture courses and IMDA's TechSkills Accelerator (TeSA) to develop and strengthen their AI and digital capabilities. Looking ahead, Singaporeans who take up eligible SkillsFuture AI courses will receive six months' complimentary access to premium versions of AI tools later this year.

    

3. 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 also 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.

    

4. 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

7 The “Labour Market Report 1Q 2026” 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.