Labour market stays tight as job vacancies outnumber unemployed in 4Q 2025

Labour demand remained firm in 4Q 2025, with job vacancies continuing to outnumber unemployed persons as of December 2025, according to the Ministry of Manpower (MOM).

The findings were detailed in the ministry’s Job Vacancies 2025 and 4Q 2025 Labour Market reports released on 20 March 2026.

MOM placed technological advances as the key driver of strong demand for skilled PMETs, particularly in digital and tech roles such as software developers, data scientists and AI engineers.

In addition to digital and tech demand, growth in advanced manufacturing and infrastructure further supported hiring for engineering professionals.

The last quarter saw job vacancies rise from 69,600 in September to 77,700 in December, pushing the job vacancy-to-unemployed ratio up from 1.50 to 1.58 over the same period.

Singapore unemployment remains low

Meanwhile, unemployment was kept low in 2025, with overall, resident, and citizen unemployment rates registering at 2 per cent, 2.9 per cent, and 3 per cent respectively in 4Q 2025.By comparison, the global unemployment rate was at 4.9 per cent last year.

MOM said resident long-term unemployment rates remained low and stable, at 0.9 per cent as of December 2025.

Total employment grows

Overall, total employment grew by 17,700 in the last quarter of 2025, bringing the year’s total employment growth to 55,500.

Resident employment growth of 11,600 was largely driven by hiring in the financial services and the health and social services sector, while the non-resident employment growth of 43,900 was attributed to the employment of work permit holders in the construction sector.

Newly created positions comprised 49.3 per cent of job vacancies in 2025, up from 45.7 per cent in 2024. These were largely attributed to business expansions, with the majority occurring in information & communications (74.2 per cent), professional services (58.2 per cent), and financial and insurance services (54 per cent) sectors.

Additionally, MOM noted that employers are increasingly prioritising skills and competencies over academic qualifications, citing hiring efficiency, broader access to talent and improved employee performance as reasons for the skills-based hiring approach.

According to an MOM spokesperson, close to 80 per cent of vacancies today do not place academic qualifications as the main criterion for hiring.

Job vacancy trends for 2025

Employers shared that in-demand roles commonly required skills in data analytics, systems analysis and problem-solving, alongside growing familiarity with AI tools.

Job opportunities spanned across various experience levels, with employers increasingly open to hiring those with little experience, though most PMET roles still required mid-level expertise.

While hiring challenges have eased overall, shortages persist in specialised tech roles such as software, web, multimedia and games developers and designers; data scientists; applications and systems programmers.

Remote-capable jobs were also on the rise, increasing from 14.4 per cent in 2024 to 22.7 per cent in 2025.

Despite the rise in remote-capable jobs, employers have shown a stronger preference for local hires, with the share of vacancies intended for overseas recruitment declining from 23.0 per cent in 2024 to 16.5 per cent in 2025.

Retrenchments remain low

Retrenchments remained low and within non-recessionary norms, with 3,690 workers laid off in 4Q 2025—equivalent to 1.5 per 1,000 employees.

For the full year, 14,490 workers were retrenched, or 6.3 per 1,000 employees.

The share of resident workers who found new jobs within six months of retrenchment inched up from 55.4 per cent in 3Q 2025 to 57.4 per cent in 4Q 2025.

Labour market outlook

In February 2026, Singapore’s growth outlook was revised upwards by the Ministry of Trade and Industry (MTI).

The ministry raised its GDP forecast for the year from 1–3 per cent to 2–4 per cent.

The upgrade reflects stronger-than-expected global economic performance, with most major economies posting better growth in the fourth quarter of 2025.

Against this backdrop, outward-oriented sectors are expected to see improved prospects and register healthy growth in 2026.

MOM expects the labour market to continue expanding in tandem with the more positive outlook.

However, it cautioned that the global environment remains uncertain and fast-changing.

While business sentiment on hiring and wages has improved, employers are likely to stay measured in their recruitment plans.

Overall, the last quarter of 2025 saw Singapore’s labour market continue its 17^th consecutive quarter of growth, underscoring the country’s sustained economic expansion and labour demand since the fourth quarter of 2021.

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