Singapore records higher layoffs and shrinking vacancies as firms adjust hiring amid economic moderation.
Singapore’s labor market is showing clearer signs of cooling as layoffs rise, hiring slows, and job seekers face fewer opportunities. Despite continued employment growth, the latest data highlights a shift toward caution among employers.
Labor Market Tightens in Q3 2025
Retrenchments in Singapore increased in the third quarter of 2025, climbing to 3,670 workers, up from 3,540 in the previous quarter. The Ministry of Manpower’s Dec 11 report highlighted a reversal after declines earlier in the year, reflecting broader economic caution.
More Firms Preparing for Redundancies
The share of companies planning layoffs rose from 1.9 percent in June to 2.3 percent in September. Employers also placed more staff on short work-week arrangements or temporary layoffs, increasing from 620 in the second quarter to 800 in the third as firms attempted to avoid costlier retrenchments.
Retrenchments Concentrated in Growth Sectors
Financial services, professional services, and information and communications accounted for a significant portion of the layoffs. Residents, defined as citizens and permanent residents, made up 74.2 percent of those affected, equivalent to 2,720 workers during the quarter.
Job Vacancies Fall While Hiring Outpaces Resignations
Job openings declined to 69,200 in September, down from 76,900 in June and lower than the 63,400 vacancies recorded in September 2024. Despite this, the recruitment rate of 1.8 percent continued to exceed the resignation rate of 1.2 percent, suggesting employees are switching jobs less frequently as opportunities narrow.
Firms Rely on Natural Attrition Over Layoffs
MOM noted that both recruitment and resignation rates have declined since late 2022, now below their ten-year averages. This trend indicates that firms are adjusting headcount gradually through attrition rather than active layoffs, while workers are becoming more cautious about changing jobs.
Employment Growth Continues but Slows Over Time
Total employment increased by 25,100 between July and September, more than double the growth seen in the previous quarter. Resident employment expanded mainly in financial and insurance services, and health and social services. Foreign employment growth was strongest in construction and manufacturing, supporting ongoing infrastructure and industrial needs.
Re-Employment After Retrenchment Declines
The share of residents securing employment within six months after retrenchment fell from 56.3 percent to 55.4 percent. Long-term unemployment remained stable at 0.9 percent. MOM cautioned that although uncertainties have eased compared with early 2025, they continue to weigh on business sentiment and hiring plans.
Singapore’s labor market remains resilient but is clearly moderating. Rising retrenchments, declining vacancies, and slower job mobility point to a cautious economic climate that affects both employers and workers across the region. For Indonesians and Singaporeans alike, these trends underscore the importance of adapting skills and strengthening workforce readiness as the outlook becomes more uncertain.
Sources: Straits Times (2025) , The Star MY (2025)
Keywords: Singapore Retrenchments, Job Vacancies Decline, MOM Labor Report, Employment Growth Singapore, Workforce Trends
