MOM just released its latest advanced quarterly labour report & employers are showing signs of caution
Singapore’s labour market continued to expand in Q1 2026, but employers are showing early signs of caution as they tighten hiring plans, according to the Ministry of Manpower (MOM)’s latest advance quarterly labour market report released today (Apr 30).
The report, based on preliminary data, found that the city-state added 5,000 jobs in the first quarter of 2026, extending an 18-quarter growth streak.
While this was higher than the 2,300 jobs added in Q1 2025, it marked a sharp slowdown from the 17,700 jobs recorded in Q4 2025.
MOM attributed the softer pace largely to seasonal factors and a high base in the previous quarter, rather than a broad-based weakening in labour demand. It noted, for instance, that construction activity typically slows during the Chinese New Year period.
At the same time, the share of firms planning to hire in the next three months fell from 54.6% in Feb to 44.6% in Mar. The proportion of firms expecting to raise salaries in the next three months also dropped from 39.3% to 25.4% over the same period.
Earlier this month, the Monetary Authority of Singapore warned that the business outlook had softened and employment growth would likely ease from 2025’s gains because of the Middle East conflict.
MOM noted that hiring sentiment has yet to recover to Feb levels before the conflict began, despite early signs of stabilisation in April.
“This suggests a more measured pace of hiring and emerging caution among firms, with potential softening if external conditions weaken,” said MOM.
Employment growth among Singaporeans and permanent residents for Q1 2026 was concentrated in sectors such as transportation and storage, and administrative and support services, while non-resident employment growth continued to be driven by the construction sector.
Meanwhile, unemployment rates remained low and broadly stable. The overall rate edged up to 2.1% in Ma, from 2% in Dec 2025. Among citizens, the rate rose to 3.1% from 3% in the previous quarter.
Some 3,700 workers were retrenched in Q1 2026, up from 3,590 a year ago, and 3,690 in the last quarter of 2025. For every 1,000 employees, 1.5 people were retrenched in the Jan to Mar period, the same as the last quarter.
“Retrenchments were stable or declined across most sectors, with a majority occurring due to business reorganisation or restructuring,” said MOM.
The full labour market report for Q1 2026 will be released by MOM in mid-Jun.
Job market forecast
Looking ahead to Q2 2026, the labour market is expected to remain tight and continue to expand, said MOM.
However, geopolitical tensions and increased economic uncertainty are also expected to make businesses cautious about hiring and wages.
Commenting on MOM’s report, Callam Pickering, senior economist at Indeed, said: “An uncertain business environment, both in Singapore and globally, will make it more difficult for Singapore businesses to plan ahead and understand their staffing needs.”
Pickering also noted that labour demand also shows signs of deterioration, with job postings on Indeed down 2.8% in Mar, compared to the end of last year, continuing a three-year downward trend in hiring demand.
Nonetheless, he pointed out that the job market “continues to be healthy,” with unemployment and retrenchment figures still low. “We expect the job market to weaken this year, but strong fundamentals will help Singapore weather the storm,” Pickering reflected.
- Read more articles we’ve written on Singapore’s job trends here.
Featured Image Credit: Shadow_of_light/ depositphotos
