Singapore’s labour market posted modest gains in the second quarter of 2025, but underlying data suggests growing pressures on young graduates and a more selective hiring landscape, according to the latest Labour Market Report released by the Ministry of Manpower (MOM) on Wednesday (Sep 17).
Total employment increased by 10,400 in Q2 2025, up from 2,300 in Q1.
Of this, resident employment — which includes both Singaporeans and permanent residents (PRs) — rose by 2,600, while non-resident employment rose by 7,800, mainly in construction and transport roles filled by Work Permit holders.
This comes as Singapore continues to expand its population base.
In 2024, the country granted citizenship to 24,000 people, including 1,400 children born overseas to Singaporean parents, and permanent residency to 35,000 others — figures that reflect a steady inflow into the resident labour force.
While MOM emphasised that the labour market “remains resilient,” observers note that resident job creation has not kept pace with the expanding resident pool.
Youth Unemployment Ticks Up
Unemployment among residents under 30 rose from 5.4% in March to 5.7% in June — the first increase for this age group in 2025.
While MOM pointed out that this remains within the pre-recessionary range of 4.9% to 6.1%, the uptick comes amid rising anxiety among fresh graduates about job prospects.
Degree holders also saw a slight increase in unemployment, from 2.8% to 2.9%, in contrast to other education groups which experienced declines.
“The labour market is still stable, but these shifts in the younger demographic are worth watching,” said Ang Boon Heng, Director of MOM’s Manpower Research and Statistics Department.
He added that long-term unemployment for those under 30 improved slightly, from 1.2% to 1.1%, suggesting that extended joblessness is not yet widespread in this cohort.
Fewer Firms Hiring, More Eyeing Layoffs
Job vacancies declined from 81,100 in March to 76,900 in June, with a broad-based drop across sectors.
This pushed the ratio of vacancies to unemployed persons down to 1.35 — the lowest since September 2024, though still indicative of more openings than jobseekers.
Forward-looking indicators showed cautious sentiment among employers:
- The proportion of firms planning to hire in Q3 dipped to 43.7% from 44.0%.
- The share expecting to raise wages fell to 22.4%, down from 24.4%.
- Meanwhile, the number planning redundancies inched up from 1.6% to 1.9%.
MOM attributed the caution to global headwinds, particularly following the US Liberation Day tariffs announced in April, which have begun to affect outward-oriented sectors like manufacturing, professional services, and transport.
Retrenchments Steady, But Re-entry Falls
Retrenchments fell slightly for the second straight quarter — from 3,590 in Q1 to 3,540 in Q2 — with most citing restructuring rather than recessionary pressures.
However, a notable soft spot emerged in the rate of re-entry into employment: only 56.3% of retrenched residents found new jobs within six months, down from 60.6% previously.
The re-entry rate was particularly low among seniors (60 and over) and non-PMETs, suggesting increased difficulty in job transitions for these groups.
More on Short Work Weeks, Layoffs as Firms Stay Cautious
The number of employees placed on short work-week or temporary layoff rose slightly, from 570 in Q1 to 620 in Q2 — driven by sectors such as wholesale trade, transportation, and accommodation.
Still, MOM said these figures do not yet point to “broad-based manpower slack,” adding that most firms appear to be adopting a “wait-and-see” approach amid economic uncertainty.
Source: Labour Market Survey, Manpower Research & Statistics Department, MOM
Graduate Traineeships, But Limited Vacancies
To support fresh graduates, the government announced the launch of Graduate Industry Traineeships, with up to 800 placements across public and private sectors starting in October.
This complements the 4,270 entry-level PMET vacancies MOM identified in June, with most in:
- Public administration and education
- Health and social services
- Construction
- Information and communications
However, with 35,000 new PRs granted in 2024 alone, some observers note that the number of new entry-level opportunities may fall short of matching demand — especially if one accounts for status conversions that do not equate to new job creation.
Conclusion: Stable on Paper, But More Nuanced in Reality
While official figures continue to frame Singapore’s labour market as stable, analysts say the headline gains in resident employment must be understood in context.
In particular, the steady influx of permanent residents and citizens — many of whom are already employed — may be skewing employment statistics, making it harder to discern the true extent of job growth for Singaporeans.
“The overall picture remains one of cautious optimism,” said Manpower Minister Dr Tan See Leng.
“But we are closely monitoring developments, especially in light of global uncertainties.”
With continued PR inflows and a maturing population, the need for greater granularity — such as citizen-specific employment data — may grow, particularly as young Singaporeans navigate a changing and competitive job landscape.
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