Hiring in a High-Stakes Market: What Singapore’s Q2 2025 Labour Report Means for Employers & Workers

Singapore’s Ministry of Manpower (MOM) just released its Labour Market Advance Release for Q2 2025, offering early insights into how the nation’s workforce is faring. Despite global economic uncertainty, the labour market has shown resilience—with notable trends for both companies and jobseekers.

Here’s what you need to know—and how it may impact hiring, career planning, and upskilling initiatives in the months ahead.

The Headlines: Growth Continues, But at a Slower Clip

• Total employment rose by 8,400 in Q2 2025—an improvement from Q1 (2,300) and Q4 2024 (7,700), though lower than Q2 2024 (11,300).
• Resident employment continued to grow in Financial Services and Health & Social Services.
• Professional Services and Information & Communications sectors continued to see declines.
• Non-resident employment growth was driven primarily by Work Permit Holders in Construction.
• Unemployment remained stable: Resident unemployment stood at 2.9%, and citizen unemployment at 3.0%.
• Retrenchments remained steady at 3,500, with most due to restructuring.

Why Now Is Still a Good Time to Hire

Despite global uncertainty, Singapore's steady economic growth (+4.3% YoY) and stable unemployment rates show that the hiring window is still open. Companies that act now to attract and retain top talent will be better positioned before labour competition intensifies in 2026.

What It Means for Employers

Despite modest growth, the MOM data suggests a recalibration in hiring:

• Businesses in outward-oriented sectors (like Finance and Tech) are becoming more cautious due to global headwinds.
• While hiring sentiment dipped slightly (from 44.0% to 43.7%), the labour market remains tight.
• Upskilling and job redesign will be critical to staying competitive in a talent-scarce environment.

With high resident labour force participation already in place, employers may need to explore:

• More inclusive hiring (e.g., mid-career professionals, caregivers returning to work)
• Workforce automation and productivity solutions
• Job redesign via MOM and WSG support programmes

What It Means for Jobseekers

The report shows that Singapore’s job market is not shrinking—it’s shifting.

• Healthcare and Financial Services remain key hiring areas.
• Those in sunset or disrupted industries—like Professional Services and ICT—should proactively reskill.
• New government schemes like Career Health SG and the SkillsFuture Jobseeker Support scheme offer both guidance and temporary financial aid.

With MOM anticipating slower employment growth ahead, workers are encouraged to:

• Tap into tools on CareerHealth.sg
• Join mid-career conversion programmes
• Stay updated on the Workforce Development Grant (WDG) launching soon

Strategic Workforce Moves: 3 Things to Prioritise Now

1. Upskilling at Speed

With softer wage expectations and tighter budgets, companies can tap on the redesigned SkillsFuture Enterprise Credit (SFE) or Productivity Solutions Grant – Job Redesign (PSG-JR).

2. Resilience Through Career Health

MOM’s Career Health SG portal encourages intentional career planning, peer coaching, and tools for navigating change.

3. Hire Smart, Hire Inclusive

Employers that leverage structured job redesign and invest in a diverse talent pool—including returning caregivers or older PMETs—will be better positioned to ride out volatility.

FAQs: Singapore Labour Market Q2 2025

Q1: What sectors are still hiring in Q2 2025?

Health & Social Services and Financial Services remain strong. Construction is also expanding due to infrastructure projects.

Q2: Which sectors are seeing job declines?

Professional Services and Information & Communications continue to see contractions in resident employment.

Q3: Are unemployment and retrenchments rising?

No. Both indicators remain stable. The unemployment rate is 2.9% (residents), and retrenchments are flat at 3,500.

Q4: What should employers focus on in the second half of 2025?

Workforce transformation, digital enablement, and resilient hiring practices—including tapping on government support.

Q5: What help is available for jobseekers?

Career Health SG tools, mid-career pathways, jobseeker support payouts (up to $6,000), and curated career coaching are all available.

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References (Consolidated with Hyperlinks)

• MOM Labour Market Advance Release Q2 2025
• Career Health SG
• SkillsFuture & WSG Schemes
• Mid-Year Economic Review – MTI
• Workforce Singapore Upskilling Programmes