Unemployment Rate in Singapore Up Slightly in Q1; Employment Growth Slows

Workers May Face Slower Wage Growth as Labour Demand Could Soften Further: MAS

- Sharon Salim

The unemployment rate in Singapore ticked up slightly in the first quarter of 2025, with employment growth slowing as escalating global trade tensions put a dent on business sentiment.

Singapore's total employment grew by 2,300 between January and March, down from the seasonal increase of 7,700 from the previous quarter, and 3,200 from the same period in 2024, according to preliminary data released by the Ministry of Manpower (MOM) on April 28.

MOM said this reflects smaller increases in employment for residents—Singaporeans and permanent residents (PRs)—as well as non-residents.

Looking ahead, workers in Singapore could experience slower wage growth as labour demand could soften further in 2025, according to the Monetary Authority of Singapore (MAS) in a separate report also out on April 28.

The central bank, in its April macroeconomic review, said: "As firms pull back on their hiring and expansion plans amid economic uncertainty, employment growth for most sectors should step down from last year."

Mr Brian Lee, an economist at Maybank Investment Banking Group, said the bank expects a fiscal support package by the third quarter, which could include wage subsidies to cushion the impact on companies and workers in sectors hit by the global trade war.

"With a more challenging business environment, companies are likely to be more conservative with wage increments and headcount expansions," he added.

Meanwhile, the resident unemployment rate came in at 2.9 per cent between January and March. The figure was 2.8 per cent in December 2024. MOM publishes unemployment rate figures monthly.