MOM: Singapore job growth slows in Q1 2026 as hiring outlook weakens - Singapore News

03 May 2026, 03:01 · The Independent

SINGAPORE: Singapore’s job market is still growing, but the pace has eased with fresh figures from the Ministry of Manpower (MOM) showing total employment rose by 5,000 in the first quarter of 2026, down from the sharp 17,700 increase in the previous quarter.

The slowdown comes as businesses grow more cautious, with hiring expectations dropping and fewer firms planning to raise wages in the near term. This adjustment shows a more extensive economic uncertainty, including ongoing geopolitical tensions.

Growth continues, but at a slower pace

Despite the softer quarter, the bigger picture remains steady. Singapore has now seen employment growth for 18 consecutive quarters.

MOM’s data shows that Q1’s increase was still stronger than the same period last year, when employment rose by 2,300. The ministry attributed the slower pace partly to seasonal factors, such as reduced construction activity during the Chinese New Year period.

After adjusting for these seasonal effects, job growth still outpaced last year, though it didn’t match the strong gains seen at the end of 2025.

Both residents and non-residents saw employment gains, with resident hiring being strongest in transport, storage, and administrative support roles. Non-resident hiring in construction continued, but growth slowed.

Unemployment and retrenchments stay stable

There was little change in unemployment. Overall rates edged up slightly in March, but remained close to December levels.

Resident unemployment held at 2.9 per cent, while citizen unemployment ticked up slightly to 3.1 per cent.

Retrenchments also stayed steady. About 3,700 workers were laid off in Q1, similar to the previous quarter. Most cases were linked to business restructuring rather than sudden closures or downturns. This suggests companies are still adjusting their operations, rather than reacting to a sharp economic shock.

Hiring sentiment drops sharply

The more telling shift lies in employer sentiment. The share of firms planning to hire in the next three months fell to 44.6 per cent in March, down from 54.6 per cent in February. Wage increase expectations also dropped, from 39.3 per cent to 25.4 per cent.

MOM noted that while there are early signs of stabilisation in April, sentiment has yet to recover to earlier levels. In simple words, companies are still hiring, but they are thinking twice before expanding aggressively.

Mid-career workers are encouraged to upgrade their skills

For job seekers, the market remains open, but competition may tighten. The steady unemployment rate suggests there is still demand for workers. However, slower hiring plans mean fewer new openings in the months ahead.

Fresh graduates may feel this shift more sharply. MOM pointed to schemes like the Graduate Industry Traineeships (GRIT) as a way to gain experience when full-time roles are harder to secure.

Mid-career workers are also being encouraged to upgrade their skills. Programmes such as the Career Conversion Programme, the Mid-Career Pathways Programme, and the new SkillsFuture Workforce Development Grant (Job Redesign+) remain central to the government’s approach.

Workers who stay adaptable will be in a better position

Singapore’s labour market is moving from a strong post-pandemic recovery into a more measured phase, so growth remains, but the pace is normalising.

At the same time, external risks are creeping in. Global tensions and softer business outlooks are starting to shape hiring decisions.

For Singaporeans, however, the job market is now walking at a steadier pace. There is no crisis here, but there is a signal. Workers who stay adaptable will be in a better position. Companies that invest in skills and productivity will likely hold up better.

So growth is still happening, just not as fast. This calls for steady moves, instead of panic.

- Advertisement -