Singapore labour market holds firm in 2025 as permanent jobs hit record high, real incomes surge: MOM

Singapore’s labour market remained resilient in 2025 despite global uncertainties, with workers enjoying higher real incomes, stronger job stability, and sustained demand for skilled roles, according to the Ministry of Manpower’s (MOM) annual labour force report released on Friday.

The study shows a labour market that has largely stabilised after the volatility of the post-pandemic years, even as demographic pressures, particularly an ageing population, continue to weigh on long-term workforce growth.

"Nominal and real incomes rose, both at the 20th percentile and the median. While job mobility eased, the majority of job switchers experience real income gains with their job moves. 

The proportion of permanent employees reached a new high, and there was a higher share of Professionals, Managers, Executives and Technicians (PMETs) among employed residents.

Labour underutilisation remained low, with unemployment rate and long-term unemployment rate within the historical range for PMETs and non-PMETs. Time-related under-employment rate declined, and the incidence of workers who were discouraged from seeking work stayed low.

The labour force participation rate for females aged 25 to 64 years improved significantly over the decade, while the labour force participation rate of their male counterparts remained high," the Ministry shared in the highlights from the report. 

One of the standout trends of 2025 is a historic rise in permanent employment. Permanent roles now account for 90.8% of all resident employment, up from 90.1% in 2024, the highest figure recorded.

The shift was especially pronounced among younger workers. Permanent employment among those aged 15 to 24 jumped nearly eight percentage points, while those aged 25 to 29 also saw gains.

The data suggests no lasting preference for gig or short-term jobs among younger Singaporeans — a trend MOM said dispels concerns of a generational shift towards precarious work.

The increase was broad-based across industries, with the strongest gains seen in Professional Services, Health & Social Services, and Information & Communications. These sectors also saw higher shares of PMET (Professionals, Managers, Executives & Technicians) roles, pushing PMET representation among resident workers to 64.2%, up from 63.8% in 2024.

Wage growth continued to be broad-based, with both median and lower-income earners seeing robust gains.

• Median (P50) nominal income rose 5.0% to S$5,775

• 20th-percentile (P20) nominal income rose 4.6% to S$3,164

With inflation easing, these translated into strong real income increases:

• P50 real income: +4.3%

• P20 real income: +3.8%

Real income growth over the past five and ten years has been faster for lower-income workers than for median earners. The income ratio between P20 and P50 rose to 0.55 — the highest in at least a decade — reflecting a continued narrowing of wage inequality, supported in part by the Progressive Wage Model.

Job switching eased in 2025, with 6.2% of residents changing jobs, down from 7.6% last year. MOM attributes this to:

• The labour market normalising after intense post-pandemic churn

• Greater worker caution amid global economic uncertainty

Yet, opportunities remain robust: 6 in 10 job switchers enjoyed real income gains, underscoring healthy job matching and upward mobility.

Unemployment Low, Under-employment Falls Labour underutilisation indicators remained tight:

• PMET unemployment: 2.8%

• Non-PMET unemployment: 2.8%

• Long-term unemployment down for both groups

• Time-related under-employment dropped to 1.9%, the lowest in years

• Discouraged workers remained minimal at 7,400 (0.3%), mostly seniors

MOM noted that discouraged worker numbers are low not because seniors feel more optimistic, but because their education and skills profile has improved markedly.

Female labour force participation continued its steady climb, rising from 74.1% in 2015 to 80.5% in 2025 among those aged 25 to 64.
This reflects:

• Rising educational attainment

• Better childcare support

• Evolving social attitudes towards gender roles

Male participation for the same age group remains consistently high at 91.8%. However, despite these gains, Singapore still trails top OECD countries due to its low rate of part-time female employment, 5.9%, compared with the OECD average of 13.7%.

Singapore’s overall labour force participation rate (LFPR) fell for the fourth consecutive year to 67.9%, driven primarily by retirements among older residents.

MOM reported 1.16 million residents outside the labour force, 20,000 more than last year, among them:

• 30.1% cited retirement

• 22% cited family responsibilities

• 15.8% cited housework

The long-term trend is clear: as baby boomers retire, labour force growth will continue to moderate. Yet Singapore still ranks among the highest LFPRs globally compared with OECD economies, thanks to strong participation among core working-age groups. 

Notably, senior participation continues rising, the share of workers aged 60 and above increased from 12.3% in 2015 to 19.3% in 2025.

Additionally, for the first time, MOM collected data on residents’ overseas work stints. 76,000 residents (3.1%) have worked overseas full-time for at least six months, a statistic MOM plans to track to better support Singaporeans preparing for global leadership roles.

MOM’s 2025 findings paint a picture of a labour market that:

• Remains tight and resilient

• Continues to generate real income growth

• Shows rising job stability

• Supports upward mobility, especially among lower-income groups

But they also underline long-term challenges:

• Population ageing

• Slowing labour force expansion

• Need for sustained productivity and skills upgrading
  

As Singapore enters a more uncertain economic cycle, MOM’s report suggests that the country’s labour fundamentals remain strong, but continued transformation will be critical to sustaining inclusive growth in the years ahead.