Labour Market sees progress in Second Quarter of 2025, according to MOM’s early report

Labor Market Update for the Second Quarter of 2025

The Ministry of Manpower (MOM) has released preliminary data indicating a robust labor market performance in the second quarter of 2025, supported by ongoing economic growth. Total employment saw an increase, with notable growth in both resident and non-resident employment, while unemployment rates and retrenchments remained stable. Resident employment expanded in sectors like Financial Services and Health & Social Services, but faced declines in outward-oriented sectors such as Professional Services and Information & Communications. Looking forward, employment is anticipated to continue growing, albeit at a more moderate pace compared to the previous year. This is primarily due to global economic uncertainties and cautious hiring sentiments, along with a high resident labor force participation rate.

Key Highlights

Total employment growth accelerated, although at a slower rate compared to the second quarter of 2024. Resident employment continued to grow in sectors like Financial Services and Health & Social Services, while some outward-facing sectors experienced declines. Non-resident employment growth was mainly driven by Work Permit Holders, particularly in the Construction sector.

Unemployment rates remained relatively stable, exhibiting minor fluctuations but staying within a non-recessionary range. While resident and citizen unemployment rates rose slightly in June 2025, they returned to levels observed in March 2025 after a slight dip in April and May.

The number of retrenchments and their incidence remained steady and low. A total of 3,500 retrenchments were recorded in the second quarter of 2025, with most sectors reporting similar or lower levels compared to the previous quarter. Business reorganization or restructuring continued to be the primary reason cited for retrenchments.

Labor Market Outlook

The outlook for the labor market remains clouded by global economic uncertainty, potentially impacting hiring and wage growth, particularly in outward-oriented sectors. Business sentiments have been relatively stable but cautious, with a slight dip in hiring and wage expectations for the third quarter of 2025. MOM’s polls indicated a decline in the proportion of firms expecting to hire and raise wages in the upcoming quarter, especially in sectors like Financial & Insurance Services, Professional Services, and Transportation & Storage.

Conclusion

MOM advises employers and workers to take advantage of various initiatives and programs to drive transformation and upskilling efforts, adapt to changes, and seize new opportunities. These include schemes like the SkillsFuture Workforce Development Grant, Career Conversion Programmes, and SkillsFuture Enterprise Credit. The government also launched Career Health SG to support Singaporeans in developing resilient and fulfilling careers, alongside the SkillsFuture Jobseeker Support scheme for involuntarily unemployed individuals.

Additionally, the Singapore Economic Resilience Taskforce (SERT) unveiled measures to aid workers during the current uncertainty, such as expanding access to career guidance services and enhancing funding support for HR certification. The Labor Market Report for the Second Quarter of 2025, set to be released in mid-September, will offer a detailed assessment of the labor market situation.

For access to the full report and data requests, interested parties can visit the MOM’s Research and Statistics Department’s website.