Singapore’s Employment Rate Slows In Q1

Singapore’s total employment rose by 5,000 in the first quarter of 2026, up from 2,300 a year earlier but sharply lower than the 17,700 recorded in the previous quarter. This decline is attributed to seasonal factors and a high base rather than broader labour market weakness. The Ministry of Manpower stated that hiring was affected by typical slowdowns during the Chinese New Year period, particularly in construction. Both resident and non-resident employment increased, with resident job gains concentrated in transportation and storage, as well as administrative and support services. Non-resident growth continued in construction, albeit at a slower pace. Meanwhile, the country’s unemployment rates edged up slightly in March, with the overall rate at 2.1 percent, resident unemployment at 2.9 percent, and citizen unemployment at 3.1 percent. These rates remained broadly stable compared to December levels. The country’s retrenchments remained low and unchanged at 1.5 per 1,000 employees in the first quarter, with 3,700 layoffs recorded, mostly due to business restructuring. The ministry expects the labor market to remain tight and continue expanding in the second quarter, though businesses are expected to be cautious in hiring and wage plans amid increased economic uncertainty from geopolitical tensions. The share of companies planning to hire fell to 44.6 percent in March from 54.6 percent in February, and wage increase expectations also declined from 39.3 percent to 25.4 percent. Although early signs of stabilization appeared in April, hiring expectations remained below pre-crisis levels, suggesting a more measured pace of employment growth.