SINGAPORE – Singapore’s labour market continued to expand in the first quarter of 2026, but signs of caution are emerging as employers pull back on hiring plans.
Unemployment rates remained low and broadly stable. The overall rate edged up to 2.1 per cent in March, from 2 per cent in December 2025. Among citizens, the rate is 3.1 per cent, up from 3 per cent in the last quarter.
The preliminary data was released by the Ministry of Manpower (MOM) on April 30.
Singapore’s total employment grew by 5,000 in the first quarter of 2026, extending a streak of 18 consecutive quarters of job growth.
This was higher than the 2,300 jobs added in the first quarter of 2025, but a sharp slowdown from the 17,700 recorded in the last quarter of 2025.
The slower pace was largely due to seasonal factors and a high base, rather than a broad weakening in labour demand, MOM said.
MOM added that employment growth among Singaporeans and permanent residents was concentrated in sectors like transportation and storage, and administrative and support services.
Meanwhile, non-resident employment growth was still led by construction, but it slowed compared to the previous quarter.
Looking ahead, MOM said firms will remain cautious in their hiring and wage plans amid geopolitical tensions, based on its polls in February and March.
The proportion of firms expecting to hire in the next three months fell from 54.6 per cent in February to 44.6 per cent in March.
The share of firms expecting to raise salaries in the next three months also dropped from 39.3 per cent to 25.4 per cent over the same period.
“Although there are early signs of stabilisation in April, expectations remain below pre-crisis levels in February. This suggests a more measured pace of hiring and emerging caution among firms, with potential softening if external conditions weaken,” said MOM.
