What's Happening?
Singapore's unemployment rate remained stable at 2.0% in the third quarter of 2025, according to the Ministry of Manpower. Employment growth was observed in sectors like financial services and health,
while outward-oriented sectors such as information and communications saw declines. Non-resident employment increased in construction and manufacturing. Retrenchments were steady, primarily due to business restructuring. Looking forward, 44.1% of firms plan to hire in the fourth quarter, though wage growth is expected to moderate due to rising costs. The ministry emphasized the importance of adaptability for employers and workers.
Why It's Important?
The stable unemployment rate indicates a resilient labor market in Singapore, despite challenges in certain sectors. The mixed hiring outlook suggests that while some industries are expanding, others face uncertainties. The reliance on non-resident workers for employment gains highlights demographic challenges and the need for workforce diversification. The government's focus on upskilling and job redesign is crucial for maintaining economic competitiveness. These developments have implications for Singapore's economic growth and labor policies, affecting both local and international businesses operating in the region.
