SINGAPORE – The unemployment rate in Singapore ticked up slightly in the first quarter of 2025, with employment growth slowing as escalating global trade tensions put a dent on business sentiment.
Singapore’s total employment grew by 2,300 between January and March, down from the seasonal increase of 7,700 from the previous quarter, and 3,200 from the same period in 2024, according to preliminary data released by the Ministry of Manpower (MOM) on April 28.
MOM said this reflects smaller increases in employment for residents – Singaporeans and permanent residents (PRs) – as well as non-residents.
The ministry noted that while resident employment continued to increase in the health and social services and financial services sectors, it saw declines in some outward-oriented sectors, such as professional services, manufacturing, and information and communications.
The number of Singapore residents with jobs also fell in the retail trade sector as seasonal hiring for the year-end festive period eased, resulting in slower employment growth.
Growth in non-resident employment was driven entirely by work permit holders in lower-skilled jobs, mainly in administrative and support services and community, social and personal services.
Meanwhile, the overall unemployment rate came in at 2.9 per cent between January and March. The figure was 2.8 per cent in December 2024.
Although the unemployment rate of Singaporeans held steady at 3.1 per cent in March compared to February, it was higher than the 2.9 per cent recorded in December 2024. These are seasonally adjusted figures.
But unemployment rates remained within the non-recessionary range, said MOM.
There were 3,300 retrenchments in the first quarter of 2025, down from 3,680 in the previous quarter.
For every 1,000 employees, 1.3 were retrenched in the January to March period, which is lower than 1.5 in the preceding quarter.
The ministry said retrenchments were stable or lower across most sectors, with business reorganisation or restructuring the top reason for such layoffs. Recession or downturn in the industry accounted for only a small proportion of retrenchments.
MOM noted the moderation of employment growth and slight uptick in unemployment “mirrors the deterioration” in Singapore’s economic outlook in the first quarter, with increasing headwinds arising from escalating global trade conflicts.
Business sentiments have become more cautious, with fewer employers are expecting to hire or raise wages in the next three months compared to December 2024.
Given greater uncertainties in external growth prospects, MOM said: “The labour market is likely to soften further moving forward.”
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