Singapore’s labour market extended its post-pandemic resilience into the first quarter of 2026, recording its 18th consecutive quarter of employment growth, even as early signs point to a more cautious hiring environment ahead.
Preliminary data released on 30 April show total employment rose by 5,000 in Q1 2026, more than double the increase seen a year ago. However, the pace slowed significantly from the 17,700 jobs added in the previous quarter, reflecting seasonal factors and a high base rather than any structural weakening.
Construction activity, for instance, typically dips during the Chinese New Year period, contributing to the moderation. Adjusted for seasonality, employment growth remained stronger than a year ago, though momentum has eased from late 2025 highs.
Growth was recorded across both resident and non-resident segments. Among residents, gains were concentrated in Transportation & Storage and Administrative & Support Services. Non-resident employment continued to be driven by the construction sector, albeit at a slower rate than in the previous quarter.
Unemployment rates remained low and broadly stable. The overall unemployment rate edged up slightly to 2.1% in March 2026, from 2.0% in December 2025, while resident and citizen unemployment rates held steady at 2.9% and 3.1% respectively.
Similarly, retrenchments showed little movement. Around 3,700 layoffs were recorded during the quarter, virtually unchanged from the previous three months, with an incidence rate of 1.5 per 1,000 employees. Most retrenchments were attributed to business reorganisation or restructuring, rather than widespread distress across sectors.
Despite these stable indicators, forward-looking signals suggest growing caution among employers. The share of firms expecting to hire in the next three months dropped sharply from 54.6% in February to 44.6% in March. Wage expectations also softened, with only 25.4% of firms planning pay increases, down from 39.3% a month earlier.
This shift reflects rising global uncertainties, particularly geopolitical tensions, which are prompting businesses to take a more measured approach to workforce expansion and compensation planning.
Looking ahead to the second quarter, the labour market is expected to remain tight and continue expanding, though at a more moderate pace. Any further deterioration in external conditions could weigh on hiring sentiment.
Against this backdrop, policymakers urged both employers and workers to accelerate workforce transformation efforts. Businesses are being encouraged to tap into schemes such as Career Conversion Programmes and the SkillsFuture Workforce Development Grant to support reskilling and job redesign initiatives.
For workers, initiatives under Career Health SG aim to strengthen employability through career coaching and training support, while fresh graduates can explore alternative entry pathways through programmes like the Graduate Industry Traineeships (GRIT).
For those facing job loss, the SkillsFuture Jobseeker Support scheme, launched in April 2025, offers temporary financial assistance of up to $6,000 over six months, tied to active job search efforts.
While Singapore’s labour market continues to demonstrate resilience, the evolving global environment is beginning to shape a more cautious, recalibrated phase, one where growth persists, but optimism is increasingly tempered by uncertainty.