MOM’s 2025 Labour Report: What It Means for Employers and Professionals in 2026

By Valerie Ong, Regional Marketing Manager
Published by Reeracoen Singapore, a leading recruitment agency in APAC.

Language
This article is written in English for readers in Singapore. Chinese and Japanese translations are available on our website.

Why the MOM Labour Report Matters Heading Into 2026

Each year, Singapore’s Ministry of Manpower (MOM) releases its Labour Report to provide a snapshot of employment, wages, unemployment, and workforce participation. While many readers focus on headline figures, the 2025 Labour Report requires deeper interpretation.

Rather than signalling sharp growth or decline, the data reflects a labour market that is stable on the surface but increasingly tight underneath. Hiring is no longer driven by optimism or expansion alone. Instead, employers are becoming more selective, while professionals are navigating a market that rewards relevance, adaptability, and skills alignment.

As Singapore moves into 2026, the MOM data provides critical signals on how hiring, retention, and career mobility are evolving — and what both employers and professionals should prepare for next.

Key Highlights From MOM’s 2025 Labour Report

According to the Ministry of Manpower’s 2025 Labour Report:

• Resident unemployment remained low, staying close to the 2% range
• Overall employment growth moderated, with gains concentrated in specific sectors rather than across the board
• Retrenchments remained contained, with no signs of widespread layoffs
• Labour force participation stayed high, including among mid-career and older workers

At a glance, these indicators suggest stability. However, the deeper story lies in how employers are hiring and how professionals are positioning themselves.

What the Data Really Tells Us About Singapore’s Labour Market

1. Low Unemployment Does Not Mean Hiring Is Easy

Despite low unemployment, employers continue to report difficulty finding job-ready candidates. This reflects a growing skills mismatch, where available talent does not always align with evolving job requirements.

In practice, this means:

• Fewer open roles, but higher expectations per hire
• Increased emphasis on experience, adaptability, and immediate productivity
• Longer hiring cycles for non-critical positions

Vacancies exist, but not every candidate is equally employable in today’s market.

2. Employment Growth Is Becoming More Selective

MOM’s data shows that job creation is increasingly focused on roles that support productivity, governance, and transformation.

Stronger demand remains in:

• Professional, managerial, executive, and technical roles
• Functions tied to digitalisation, compliance, finance, and operations
• Positions supporting regional or cross-border responsibilities

Meanwhile, roles with lower value-add or limited growth pathways are seeing slower expansion. For professionals, this reinforces a clear message: employability is tied to relevance, not tenure.

3. Wage Growth Is Uneven Across Roles and Sectors

While wages continued to rise in 2025, increases were not uniform. Higher wage growth was observed in roles where skills are scarce or demand is sustained, while more generalist positions saw modest adjustments.

For employers, this raises concerns around:

• Salary compression
• Retention risks at mid-level roles
• Budget planning for 2026

For professionals, pay growth is increasingly linked to skills scarcity and business impact, rather than seniority alone.

Insights From Reeracoen’s Singapore Hiring Data

Insights from Reeracoen’s Singapore Hiring Manager Survey 2025–2026 and the Singapore Employee Sentiment Study 2026 reinforce MOM’s findings.

Our data shows that:

• Many professionals are not actively job-hunting, but are quietly monitoring opportunities
• Employers are prioritising quality hires over headcount growth
• Salary remains important, but non-pay factors such as flexibility, leadership, and role clarity increasingly influence decisions

This creates a labour market where hiring is cautious, and career moves must be deliberate and well-justified.

What This Means for Employers in 2026

Hiring Will Remain Disciplined, Not Frozen

The MOM data does not point to a hiring freeze. Instead, employers are expected to:

• Hire selectively for critical roles
• Expect stronger justifications for headcount additions
• Focus on candidates who can contribute quickly

Hiring decisions in 2026 will be more strategic, not reactive.

Retention Will Matter More Than Replacement

In a tight labour market, replacing experienced employees is costly and time-consuming. Employers should expect retention to remain a key priority, particularly for roles that are difficult to backfill.

Effective retention strategies go beyond pay and include:

• Career clarity and progression
• Leadership quality
• Sustainable workloads and team structures

Skills Alignment Becomes a Business Risk Issue

Skills mismatches are no longer just an HR concern. They directly affect productivity, continuity, and growth.

Employers entering 2026 should:

• Audit critical skills against business goals
• Identify roles vulnerable to automation or restructuring
• Invest in upskilling aligned with real job pathways

What This Means for Professionals in Singapore

Job Security Is Increasingly Skills-Based

Low unemployment does not guarantee individual job security. Professionals who remain competitive in 2026 typically:

• Invest in continuous learning
• Can articulate the value of their skills across roles or industries
• Demonstrate adaptability and measurable impact

Career Mobility Is Cautious, But Not Closed

Many professionals are open to opportunities but are more selective about career moves. Employers are also more discerning, placing greater emphasis on motivation, readiness, and long-term fit.

Successful job moves in 2026 require clarity and preparation, not opportunism.

Pay Growth Depends on Scarcity, Not Seniority

Wage growth increasingly favours professionals who possess:

• In-demand or niche skills
• Cross-functional or regional exposure
• Leadership or transformation responsibilities

Professionals should ask: What problem do I solve that fewer people can?

 

Frequently Asked Questions (FAQ)

Is Singapore’s labour market weakening in 2026?

No. MOM’s data indicates stability, but with tighter hiring standards and greater selectivity.

Will salary pressure continue in 2026?

Yes, particularly for roles with sustained demand or skills shortages, although increases will not be uniform.

Are retrenchments expected to rise?

There is no strong indication of widespread retrenchments, but role reshaping and redeployment are likely to continue.

How can professionals stay employable in 2026?

By focusing on relevant skills, continuous learning, and demonstrating tangible business impact.

 

For Employers
 👉 Speak with Reeracoen Singapore to discuss hiring plans, salary benchmarks, and workforce strategies for 2026.

 [Talk to our hiring specialists]

For Professionals
 👉 Explore current job opportunities and receive career guidance aligned with Singapore’s evolving labour market.

 [Submit your CV to Reeracoen Singapore]

 

🔗 Related Articles (Singapore)

You may also find these Reeracoen Singapore articles useful:
Beyond the Paycheque: What Singapore Employees Really Want in 2026
Why Paying More Is No Longer Enough to Retain Talent in Singapore
Top In-Demand Jobs in Singapore: Skills, Salaries and Hiring Trends

📚 References

• Ministry of Manpower (MOM), Labour Force in Singapore 2025
• Ministry of Manpower (MOM), Labour Market Developments 2025
• Reeracoen Singapore, Hiring Manager Survey 2025–2026
• Reeracoen × Rakuten Insight, Singapore Employee Sentiment Study 2026

 

 

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