Singapore Labour Market Quick Take: Q2 2025 Review & Outlook
The labour market in Singapore continued its upward trajectory in the second quarter of 2025, demonstrating resilience amid global uncertainties.
Key Highlights: Q2 2025 Snapshot
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Economic Growth Boosts Momentum
Singapore’s economy grew by 4.3% year-on-year in Q2 2025, up from 4.1% in Q1. -
Employment Gains Continue
Total employment rose by 8,400 in Q2, surpassing Q1’s growth (2,300) and Q4 2024 (7,700), though trailing Q2 2024 (11,300). -
Diverging Sectoral Trends
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Resident employment sustained growth in Financial Services and Health & Social Services, but Professional Services and Information & Communications continued to decline.
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Non-resident employment gains were driven entirely by Work Permit holders, particularly in the Construction sector.
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Unemployment Rates Remain Stable
After easing slightly in April and May, unemployment rates for residents (2.9%) and citizens (3.0%) ticked up in June but remained within non-recession norms. -
Steady Retrenchments
Retrenchments held stable at 3,500, with an incidence rate of 1.4 per 1,000 employees—consistent with Q1. Organizational restructuring remained the chief cause.
What It Means for Businesses & Workers
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Staying Adaptive Is Key
As outward-oriented sectors face headwinds, employers and workers should pivot to resilient areas such as Financial and Health Services, and ramp up upskilling efforts. -
Support Schemes Are Evolving
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The upcoming SkillsFuture Workforce Development Grant (WDG) will consolidate workforce transformation initiatives under one roof for easier access.
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The SkillsFuture Jobseeker Support continues to assist involuntarily unemployed individuals with up to $6,000 over six months.
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The Economic Resilience Taskforce (SERT) is expanding career guidance services and facilitating HR certification support.
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Future Watch: Detailed Labour Market Report
The Labour Market Report for Q2 2025—scheduled for mid-September—will provide deeper insights including resident versus non-resident breakdowns, sectoral data, job vacancies, and labour turnover trends.
Quick Reference: Q2 2025 Labour Landscape at a Glance
| Metric | Q2 2025 Highlights |
|---|---|
| GDP Growth | +4.3% YoY (vs 4.1% in Q1) |
| Employment Change | +8,400 (↑ from Q1’s +2,300; ↓ vs Q2 2024’s +11,300) |
| Resident Employment | Up in Financial & Health Services; down in Professional & Info & Comms |
| Non-Resident Employment | Growth driven by Work Permit holders in Construction |
| Unemployment (Residents/Citizens) | 2.9% / 3.0% (slightly higher in June) |
| Retrenchments | 3,500; 1.4 per 1,000 employees; stable quarter-on-quarter |
| Government Support Highlights | SkillsFuture WDG forthcoming; Jobseeker Support & SERT initiatives ongoing |
| Next Labour Market Report | Mid-September 2025 |
Final Thoughts
Singapore’s labour market continued to expand in Q2 2025, reflecting healthy economic growth and hiring activity. Although certain outward-oriented sectors remain under pressure, gains in key areas and robust government support schemes provide optimism. With detailed insights coming in mid-September, this period is ripe for strategic planning and transformation to future-proof businesses and careers.
Disclaimer: This article is for informational purposes only and does not constitute any professional advice. Feel free to contact us to consult with our professional advisors team for personalized advice and guidance.
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