Unemployment inches up in Q1 2025 as jobs growth slows: MOM

CNA

13 hours ago

SINGAPORE: Overall unemployment in Singapore rose slightly from 1.9 per cent at the end of 2024 to 2 per cent at the end of the first quarter of 2025, according to latest figures from the Manpower Ministry (MOM).
Data released on Friday (Jun 27) showed that the labour market continued to grow but dipped from 7,700 jobs in Q4 2024 to 2,400 in Q1 2025.
Job vacancies rose from 77,500 in December 2024 to 81,100 in March, reflecting a broad-based increase, although manufacturing showed signs of slowing labour demand.
MOM's labour market statistics for Q1 2025 did not capture the potential impact of the United States' tariff increases, as these were announced in early April.
The unemployment rate is part of a basket of indicators that MOM is watching closely to measure the tariffs' effects going forward, said Mr Ang Boon Heng, director of the manpower research and statistics department.
Other indicators are an increase in short work-weeks and temporary layoffs, which tend to be employers' first response before retrenchment, as well as a drop in job vacancies and weak hiring sentiment, he said.
The global economic outlook remains uncertain in the near term, but Singapore's external demand outlook has improved slightly as major economies have taken steps to deescalate trade tensions, said MOM.
SLOW TO HIRE AND FIRE
Jobs data from Q1 2025 suggest that while firms have exercised caution in hiring, they also held back from deeper workforce cuts, reflecting a measured approach amid economic uncertainty, MOM said.
Businesses remained measured in their manpower outlook in forward-looking polls the ministry conducted in April and May – after the US tariff announcement hike and subsequent 90-day pause on tariff collection above 10 per cent. The universal application of 10 per cent reciprocal tariffs is still in effect.
There was a modest increase in hiring intentions, with 40.5 per cent of firms surveyed in Q1 2025 indicating they planned to hire for the next quarter. This rose to 42.2 per cent of those polled in April and May over their third-quarter hiring plans.
MOM pointed out that the increase was largely driven by the professional and financial services sectors, while hiring sentiment softened in most other sectors.
Resident employment growth came in at 300 jobs in Q1 2025, mainly in the sectors of health and social services, and financial and insurance services.
There was a decline in resident employment in the professional services, and the information and communications sector.
The mild increase in resident jobs was not surprising given the already high labour force participation and employment rates in Singapore, said an MOM spokesperson.
Growth in non-resident jobs was led by work permit holders in positions like bus and truck drivers, which are less likely to attract resident applicants, according to the ministry.
UNEMPLOYMENT UP, RETRENCHMENT DOWN
There was an increase in the overall unemployment rate - 2.9 per cent in December 2024 to 3.1 per cent for citizens in March - and from 2.8 per cent to 2.9 per cent for residents between that period.
The resident long-term unemployment rate also inched up to 0.9 per cent this March, after holding steady at 0.8 per cent over the past quarters from March 2024.
This figure, which measures residents who have been jobless for at least 25 weeks, remained comparable to non-recessionary norms of 0.6 to 0.9 per cent, said MOM.
The ministry highlighted an increase in long-term unemployment in residents below 30, rising from 0.9 per cent in December 2024 to 1.2 per cent in March.
Seniors aged 50 to 59 also experienced an increase in long-term unemployment from 1 per cent in December 2024 to 1.1 per cent in March, and from 0.8 per cent to 1 per cent between that period for those aged 60 and above.
Retrenchments fell from 3,680 in the previous quarter to 3,590 in Q1 2025, and there were fewer employees placed on short work-week or temporary layoffs – from 660 in the previous quarter to 570 in Q1 2025.
The rate of residents re-entering employment within six months of retrenchment also improved from 58.1 per cent in the previous quarter to 60.6 per cent in Q1 2025.