Singapore’s labour market continued its steady expansion in the first quarter of 2026, with total employment rising by 9,400. Continuing to extend the city-state’s run of job growth to 18 consecutive quarters since late 2021, as reported by multiple media reports.
The latest Labour Market Report from the Ministry of Manpower (MOM) showed that while overall employment growth slowed compared with the previous quarter, gains among resident workers accelerated.
This underlines sustained demand for local talent despite a more cautious hiring environment.
Local hiring gains
Resident employment increased by 5,400 in the first quarter, up from 3,100 in the previous three months, driven largely by growth in administrative and support services, transportation and storage, and public administration.
During a company visit to Star Furniture Pte Ltd, Manpower Minister Dr Tan See Leng highlighted the resilience of the labour market despite emerging challenges in some sectors.
“While some outward-facing sectors such as manufacturing and financial services have seen a slight increase in retrenchment, overall levels remain within non-recessionary norms,” said Dr Tan.
MOM said administrative and support services benefited from stronger hiring in employment activities and travel-related services, while transportation and storage continued to expand alongside growing economic activity.
Non-resident employment also grew during the quarter, particularly in construction and manufacturing, although the pace of growth moderated compared with the previous quarter.
Unemployment remains stable
Singapore’s unemployment rates remained low and largely unchanged in March 2026.
The overall unemployment rate stood at 2%, while resident and citizen unemployment rates held steady at 2.9% and 3.1% respectively.
Long-term unemployment among residents also remained stable at 0.9%, indicating continued confidence in the labour market.
Among younger workers aged below 30, unemployment edged up from 5.8% to 6.2%.
MOM attributed the increase largely to more frequent job transitions among younger employees rather than a shortage of employment opportunities.
Older workers continued to enjoy strong labour market outcomes, with unemployment among those aged 60 and above remaining low at 1.8%.
Strong labour demand
Despite signs that hiring momentum is easing, labour demand continued to outpace the supply of job seekers.
Job vacancies fell from 77,700 in December 2025 to 73,300 in March 2026, mainly due to a decline in non-PMET vacancies. However, vacancies still exceeded the number of unemployed persons.
The vacancy-to-unemployed ratio stood at 1.46, meaning there were approximately 146 available jobs for every 100 unemployed individuals.
Demand for skilled professionals also remained healthy, with PMET vacancies increasing and sectors such as financial services and manufacturing continuing to seek specialised talent.
Retrenchments edge higher
Retrenchments rose slightly to 3,830 in the first quarter from 3,690 in the previous quarter, with increases concentrated in export-oriented sectors including manufacturing, financial services and professional services.
Even so, the incidence of retrenchment remained low at 1.6 per 1,000 employees, below the pre-pandemic non-recessionary average of 1.7 per 1,000 employees.
Business restructuring and organisational changes remained the leading cause of retrenchments, accounting for nearly three-quarters of all cases.
There were also encouraging signs for displaced workers. The proportion of resident workers securing new employment within six months of retrenchment increased from 57.4% in the final quarter of 2025 to 60.7% in the first quarter of 2026.
“What encourages me is that we are seeing more retrenched workers finding their way back into employment,” said Dr Tan.
AI drives job redesign
Artificial intelligence adoption continued to rise across Singapore’s economy, with 28.5% of firms reporting that they had adopted AI in 2025.
The highest adoption rates were recorded in information and communications, where nearly three-quarters of businesses reported using AI. Professional services and financial and insurance services also recorded strong uptake.
However, concerns about widespread job losses linked to AI appear limited for now. Only 6.2% of firms reported reducing headcount or hiring because of AI implementation.
Instead, organisations were far more likely to use AI to reshape work processes and redesign roles. Nearly one in five firms reported changing job functions as a result of AI adoption.
Dr Tan said: “MOM’s survey found that firms were about three times more likely to redesign jobs and work processes than reduce headcount or hiring because of AI.”
The findings suggest that AI is currently transforming the nature of work rather than replacing large numbers of workers.
Cautious outlook
Looking ahead, MOM expects Singapore’s labour market to remain resilient, although businesses may adopt a more measured approach to hiring and wage increases amid global economic uncertainty and geopolitical tensions.
Business surveys cited in the report showed fewer employers intending to hire or raise wages over the coming months, reflecting growing caution in the external environment.
Nevertheless, the ministry believes sustained economic growth and continued workforce development efforts will help support labour market stability.
Workers are being encouraged to strengthen their employability through SkillsFuture courses, career coaching programmes offered by Workforce Singapore and NTUC’s Employment and Employability Institute (e2i).
Along with AI-focused training initiatives designed to help them adapt to changing workplace demands.