Singapore’s Labour Market in 2026: What 4Q 2025 Signals for Hiring, Wages, and Job Security Ahead

GeneralJanuary 29, 2026 23:00

Singapore labour market outlook 2026 showing stable employment growth and hiring trends.

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

Introduction: A Labour Market That Defies Global Uncertainty

As global economic conditions remain mixed, Singapore’s labour market has entered 2026 from a position of relative strength. According to the Labour Market Advance Release for Fourth Quarter 2025 published by the Ministry of Manpower, employment growth remained steady, unemployment stayed low, and retrenchments were contained.

For employers and professionals in Singapore, this data offers more than reassurance. It provides clear signals on how hiring strategies, wage expectations, and career decisions are likely to evolve in 2026.

This article breaks down the key findings from MOM’s latest release and translates them into practical insights for companies planning their workforce strategy and workers navigating the year ahead.

1. Employment Growth Strengthened in 2025 and Carried into Late Year

Singapore added 57,300 jobs in 2025, a clear increase from 44,500 in 2024, reflecting sustained labour demand despite external uncertainties.

In 4Q 2025, total employment grew by 19,600, exceeding growth in the same quarter of the previous two years. While this was slightly lower than the unusually strong 3Q 2025 increase, it confirms that hiring momentum remained intact through year-end.

Resident employment growth was led by Financial Services and Health & Social Services, while non-resident employment growth was driven primarily by Construction, largely among Work Permit holders.

What this tells us:
Singapore’s labour market continues to be supported by both high-value services and essential infrastructure activity, helping to stabilise employment outcomes.

2. Unemployment Remains Low by Historical Standards

Unemployment rates in December 2025 remained unchanged from September:

  • Overall unemployment: 2.0%
  • Resident unemployment: 2.9%
  • Citizen unemployment: 3.0%

For the full year, unemployment averaged similar levels to 2023 and 2024.

These figures indicate that while job mobility and transitions continue, the market is not experiencing broad employment stress. For workers, this suggests that employability remains relatively strong. For employers, it reinforces that competition for capable talent has not eased significantly.

3. Retrenchments Stayed Contained and Largely Strategic

Retrenchments in 4Q 2025 stood at 3,600, equivalent to 1.5 retrenched per 1,000 employees, similar to the previous quarter.

Across the whole of 2025, 14,400 workers were retrenched. While slightly higher than in 2024, this remains low compared with historical downturn periods.

Most retrenchments were attributed to business reorganisation or restructuring, rather than company closures. Retrenchments were also spread across sectors, with no single industry driving the increase.

Key takeaway:
Workforce adjustments in Singapore remain targeted and strategic, not crisis-driven.

4. Hiring Continues into 2026, but with Greater Selectivity

Looking ahead to 1Q 2026, employer sentiment points to continued hiring, albeit with more caution.

  • Firms expecting to hire dipped slightly from 44.1% to 43.3%
  • Firms expecting to retrench rose from 2.3% to 4.3%, still low in absolute terms

This suggests that hiring decisions in 2026 will be more deliberate. Employers are prioritising critical roles, clearer job scopes, and stronger alignment between skills and business needs, rather than expanding headcount broadly.

5. Wage Pressures Are Rising in Targeted Areas

One notable shift in the data is compensation intent.

The proportion of firms planning to raise wages increased from 19.3% to 26.4%. This reflects improving business conditions and ongoing competition for specialised skills.

However, wage growth is expected to remain uneven, with stronger increases in roles tied to revenue, compliance, technology, and transformation, rather than across all functions.

For employers, this reinforces the importance of salary benchmarking and total rewards clarity. For workers, it highlights the value of aligning skills with areas of sustained demand.

6. What This Means for Employers in Singapore

Taken together, the data points to a labour market that is stable, competitive, and evolving.

In 2026, successful employers are likely to be those who:

  • Hire with precision rather than volume
  • Strengthen retention beyond annual pay reviews
  • Invest in skills that improve productivity and resilience
  • Plan workforce needs earlier rather than reactively

Hiring challenges are less about the absence of talent, and more about role clarity, expectations, and execution.

7. What This Means for Workers and Jobseekers

For professionals in Singapore, the outlook remains cautiously positive.

Opportunities continue to exist across sectors, but competition has intensified. Employers are screening more carefully for capability, adaptability, and long-term potential.

Workers considering a move in 2026 should focus on:

  • Skills relevance, not just job titles
  • Clear articulation of impact and experience
  • Preparation for more structured and selective hiring processes

 

Frequently Asked Questions (FAQ)

Is Singapore’s labour market expected to weaken in 2026?

No. Current indicators point to continued expansion, though hiring is becoming more selective rather than aggressive.

Are retrenchments likely to increase significantly?

Broad-based retrenchments remain unlikely. Most workforce adjustments are expected to stay targeted and role-specific.

Will wages continue to rise in 2026?

Wage growth is expected in high-demand roles, but not uniformly across all functions.

Is it a good time to change jobs in Singapore?

For professionals with relevant and in-demand skills, opportunities remain available, but preparation and role fit matter more than timing alone.

 

Conclusion: Stability with Strategic Choices Ahead

Singapore’s labour market enters 2026 on steady footing. Employment growth continues, unemployment remains low, and employers are still hiring, though with sharper focus.

For both companies and workers, success in 2026 will depend less on speed and more on strategy. Clear priorities, realistic expectations, and long-term thinking will define who stays competitive in the year ahead.

 

Looking to hire skilled professionals in Singapore in 2026?
👉 Speak with Reeracoen Singapore for targeted hiring support and market insights.

Exploring your next career move in Singapore?
👉 Connect with Reeracoen Singapore for confidential career guidance and job opportunities.

 

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📚 References

 

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

 

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