Singapore's labour market is a story of strength and resilience, but a shift is on the horizon. The latest data reveals a robust market with a promising future, yet one that may soon ease up.
In the third quarter of 2025, Singapore's labour market experienced a significant boost, with employment growing at an impressive rate. The numbers speak for themselves: a 25,100 increase in total employment, compared to the previous quarter's 10,400, is a testament to the market's vitality. However, here's where it gets controversial: the Ministry of Manpower predicts a softening of labour demand in 2026, indicating a potential slowdown.
The Labour Market Report highlights the Financial and Insurance Services sector as the leader in resident employment growth, while Construction and Manufacturing sectors drove non-resident employment expansion. On the flip side, global economic challenges impacted the Information and Communications and Professional Services sectors, resulting in muted changes. Additionally, employment declines were noted in Administrative & Support Services and Wholesale Trade.
The report suggests that the fall in Administrative & Support Services, particularly in Employment Activities, reflects a reduced demand for temporary and outsourced roles, such as HR and customer service officers. This trend is a clear indicator of the market's response to economic uncertainties.
Looking ahead, the Ministry of Manpower expects a moderate labour demand in 2026, with fewer firms planning to hire or increase wages in the first quarter. This expectation is further supported by the rise in planned redundancies, which have increased from 1.9% to 2.3% of all firms, reflecting the ongoing global economic instability.
Job vacancies have been on a downward trend this year, dropping from 76,900 in June to 69,200 in September 2025. Recruitment and resignation rates have also followed a similar path, falling below their 10-year averages. The report interprets this as a strategy employed by firms to manage headcount through natural attrition rather than active layoffs.
"Employees, perceiving fewer opportunities, are switching jobs less frequently, leading to lower labour mobility," the report states. This finding aligns with previous reports of a weaker hiring sentiment in Singapore, which ManpowerGroup attributes to a "period of recalibration" for employers.
Linda Teo, Country Manager of ManpowerGroup Singapore, explains, "More employers are focused on maintaining staffing levels or holding off on decisions until economic conditions become clearer. Those hiring are doing so strategically, driven by growth, diversity, and competitive advantage."
So, while Singapore's labour market has shown resilience and growth, the future may bring a more cautious approach. The question remains: will this predicted easing of labour demand materialize, and what impact will it have on the country's economic landscape? We invite you to share your thoughts and predictions in the comments below.
