Singapore’s Labour Market in Q2 2025: Resilient, Evolving, and What It Means for You

Singapore’s labour market showed resilience in the second quarter of 2025, even as global uncertainties and technological shifts continue to reshape the way we live and work. For companies, this is a moment to balance growth with caution. For workers, it is a reminder that skills, adaptability, and career health are more critical than ever.

At Reeracoen, a leading recruitment agency in Singapore and APAC, we work at the heart of these changes—helping businesses secure the right talent and empowering professionals to build meaningful careers. Let’s break down the latest findings from the Ministry of Manpower (MOM)’s Labour Market Report Q2 2025, and explore what the numbers really mean for both employers and jobseekers.

💡 Looking beyond the quarterly numbers? MOM has also just released its Addendum to the President’s Address, outlining Singapore’s long-term workforce policies in the age of AI and longevity. Read our analysis here.

Employment Growth Returns to Form

• Total employment grew by 10,400 in Q2 2025, improving significantly from the muted gains in Q1.
• Resident employment continued to expand, especially in growth sectors like Health & Social Sciences.
• Non-resident employment rose mainly through Work Permit holders in roles such as construction labourers, bus and truck drivers.

📌 For employers: Demand for healthcare and social services talent remains strong, signalling opportunities for businesses in these sectors. Construction and logistics continue to rely on non-resident labour, requiring long-term planning.

📌 For workers: Professionals in healthcare and social sciences are in demand. Workers in other sectors should continue reskilling to stay competitive.

Unemployment Rates Remain Low

In June 2025:

• Overall unemployment: 2.0%
• Resident unemployment: 2.8%
• Citizen unemployment: 2.9%
• Long-term unemployment (residents): 0.9%

📌 Why this matters: Unemployment remains among the lowest globally, but outward-oriented sectors like Professional Services and Information & Communications are showing some signs of softening.

Job Vacancies Ease but Still Outpace Jobseekers

• Vacancies fell from 81,100 (Mar 2025) to 76,900 (Jun 2025).
• Vacancy rate dipped slightly from 3.2% to 2.9%.
• Still, there are more vacancies than jobseekers (ratio: 1.35).

📌 Takeaway: Hiring demand remains strong, but jobseekers must keep skills relevant to match evolving employer needs.

Retrenchments and Re-entry Rates

• Retrenchments declined from 3,590 (Q1) to 3,540 (Q2).
• Retrenchment incidence: 1.4 per 1,000 employees.
• Re-entry rate fell slightly from 60.6% (Q1) to 56.3% (Q2), especially for non-PMETs.
• Only 620 employees were placed on short work-week or temporary layoff in Q2.

📌 Implication: Retrenchments remain low, but slower re-entry highlights the need for more reskilling, especially for non-PMETs.

The Road Ahead

Singapore’s GDP forecast for 2025 was upgraded to 1.5–2.5%, though growth is expected to slow in the second half of the year. Companies are preparing by moderating wage increases and being selective in hiring.

Resilience will depend on adaptability—both for businesses redesigning jobs and for workers future-proofing their careers.

What Employers Can Do

1. Tap government schemes: Career Conversion Programmes, Mid-Career Pathways, PSG-JR, and SkillsFuture Enterprise Credit.

2. Invest in future-ready talent: Work with partners like Reeracoen to access skilled candidates and create structured career pathways.

3. Stay flexible: Use short work-week arrangements where needed and align wages with productivity.

What Workers Should Do

1. Build career resilience: Use WSG’s CareersFinder, explore SkillsFuture training, and take part in coaching programmes.

2. Leverage support: Apply for the SkillsFuture Jobseeker Support scheme (up to $6,000 over six months).

3. Stay adaptable: Focus on growing sectors like healthcare, logistics, and digital services.

 

FAQ: Singapore Labour Market Q2 2025

Q1. Is Singapore’s labour market still strong despite global uncertainty?

Yes. Employment grew by 10,400 in Q2 and unemployment remains low at 2.0%.

Q2. Which sectors are growing?

Health & Social Sciences lead the way, while outward-oriented sectors face some softening.

Q3. Are there still more jobs than jobseekers?

Yes. The job vacancy-to-jobseeker ratio stands at 1.35.

Q4. What support exists for unemployed workers?

The SkillsFuture Jobseeker Support scheme offers financial aid, plus career conversion and training programmes are widely available.

Q5. What should employers prioritise?

Upskilling, job redesign, and adopting workforce transformation programmes.

 

Final Thoughts

Singapore’s Q2 2025 Labour Market Report shows resilience but also signals the need for continued adaptability. Employers must redesign jobs and upskill teams, while workers should embrace lifelong learning and career health.

At Reeracoen, we connect the dots—linking employers with the right talent and empowering jobseekers to thrive.

 

🚀 For Employers
Looking to hire skilled professionals in Singapore? Connect with Reeracoen to find the right talent today.

🌟 For Jobseekers
Ready to explore new opportunities? Submit your CV with Reeracoen and discover your next career path.

 

 

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References

Ministry of Manpower (MOM) – Labour Market Report 2Q 2025
Ministry of Trade and Industry (MTI) – Economic Survey of Singapore 2Q 2025
Ministry of Manpower (MOM) – Addendum to the President’s Address, First Session of the 15th Parliament