Singapore employment growth slows in Q1 as MOM warns hiring could soften further
Unemployment rates and retrenchments, meanwhile, remained broadly stable, said the Manpower Ministry in an advance release of its quarterly labour force report.
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SINGAPORE: Singapore's total employment growth moderated in the first quarter of 2026 compared with the previous quarter, but the labour market remained resilient as employment grew for the 18th consecutive quarter, the Ministry of Manpower (MOM) said on Thursday (Apr 30).
Employment growth also remained stronger than a year ago, while unemployment rates and retrenchments remained broadly stable, said MOM in an advance release of its quarterly labour force report.
Earlier this month, the Monetary Authority of Singapore said the overall business outlook had softened and that employment growth was expected to ease from the gains seen in 2025 due to the Middle East conflict.
Total employment grew by 5,000 in Q1 2026, higher than the 2,300 increase in Q1 2025, but down from the 17,700 increase in Q4 2025.
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"The moderation this quarter reflects seasonal effects and a step-down from a high base, rather than a broad-based weakening in the labour market," said MOM.
"For instance, construction activity typically slows during the Chinese New Year period."
Employment growth, after adjusting for seasonality, remained higher than a year ago, though still slowed from the previous quarter, added MOM.
Employment grew for both residents and non-residents in Q1 2026. Resident employment growth was concentrated in the transportation and storage sector, as well as in administrative and support services.
Non-resident employment growth continued to be driven by the construction sector, but at a slower rate than the last quarter, said MOM.
Meanwhile, unemployment rates edged up in March 2026, but remained broadly stable when compared with December 2025.
Resident unemployment for both months stayed the same at 2.9 per cent, while citizen unemployment stood at 3.1 per cent in March 2026, compared with 3 per cent in December 2025.
The number of retrenchments stood at 3,700 – or 1.5 per 1,000 employees – in Q1 2026, comparable to the 3,690 in the previous quarter.
"Retrenchments were stable or declined across most sectors, with a majority occurring due to business reorganisation or restructuring," said MOM.
MOM said the full labour market report for Q1 2026 will be released in mid-June.
LABOUR MARKET OUTLOOK
Looking ahead to Q2 2026, the labour market is expected to remain tight and continue to expand, said MOM.
However, businesses are also expected to be cautious in their hiring and wage plans amid increased economic uncertainty due to geopolitical tensions.
The Manpower Ministry said that hiring expectations for the next three months fell to 44.6 per cent in March 2026, from 54.6 per cent in February 2026.
Meanwhile, expectations of wage increases fell to 25.4 per cent from 39.3 per cent over the same period.
"Although there are early signs of stabilisation in April, expectations remain below pre-crisis levels in February. This suggests a more measured pace of hiring, with potential softening if external conditions weaken," said MOM.
The ministry added that in view of the headwinds in the global economy, companies should take proactive action to transform their workforce, and workers should also upgrade themselves to be prepared to seize new opportunities.
Employers can make use of existing schemes, such as the career conversion programmes and Mid-Career Pathways Programme, to reskill and upskill their workers, MOM said.
Workers are encouraged to take proactive steps to improve their employability and access better job opportunities through schemes such as Career Health SG.
They can also use career coaching and guidance services provided by Workforce Singapore and NTUC's Employment and Employability Institute, as well as join SkillsFuture training programmes.
Fresh graduates facing difficulties finding employment can utilise the Graduate Industry Traineeships, or GRIT, scheme as an alternative entry point into the workforce that enables them to gain industry-relevant skills and experience, MOM said.
Eligible involuntarily unemployed individuals can receive temporary financial support of up to S$6,000 over six months via the SkillsFuture Jobseeker Support scheme while they are looking for jobs, the ministry added.
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