KUALA LUMPUR - Singapore’s labour market continued to grow in the fourth quarter of 2025, adding 17,700 jobs, marking the 17th straight quarter of expansion.

For the whole of 2025, 55,500 jobs were created, with about four out of five going to non-resident workers.

Resident employment increased by 11,600, while non-resident employment rose by 43,900, showing a much faster growth among foreign workers.

However, job growth slowed compared to the previous quarter, suggesting the labour market may be past its peak.

Some sectors that depend on global demand began to shrink, while job cuts, reduced part-time hours and low job switching pointed to a softer market.

Resident workers mainly found jobs in finance, healthcare and social services, which require higher skills.

Non-resident workers were mostly hired in construction and manufacturing, where jobs are more physical and harder to fill locally.

These trends show that local and foreign workers are filling different types of roles in the economy.

Still, the faster growth of foreign workers raises questions about long-term dependence on non-resident labour.

The spread of job growth across industries also weakened in the fourth quarter.

The Employment Diffusion Index fell, showing fewer sectors were hiring compared to before.

Outward-facing sectors, such as manufacturing and transport, saw more job losses than gains.

In contrast, domestic sectors like construction and retail continued to support job growth.

Some of the job gains were temporary, driven by holiday and event-related hiring.

This suggests overall job growth may not fully reflect the true strength of the labour market.

Unemployment remained low and stable at around 2.0 per cent overall.

However, younger workers and degree holders showed early signs of pressure in finding jobs.

Long-term unemployment also rose slightly among younger workers and graduates.

Older workers, on the other hand, saw better job prospects with lower unemployment rates.

Total retrenchments stayed low, although slightly higher than the previous year.

Most job losses were due to company restructuring rather than economic decline.

However, job cuts among professionals exceeded pre-pandemic levels, especially in finance and tech sectors.

At the same time, employment in the information and communications sector declined after previous growth.

Some sectors showed both job cuts and job openings, suggesting ongoing restructuring.

Most retrenched workers received compensation, with many getting at least two weeks of pay per year of service.

Companies also reduced working hours for part-time staff instead of cutting jobs.

Short work-week arrangements increased, showing firms are managing costs carefully.

These trends suggest companies are adjusting slowly rather than making major layoffs.

Job vacancies rose to 77,700 in December 2025, mainly driven by construction demand.

The ratio of job vacancies to unemployed people remained high, indicating continued labour demand.

However, hiring activity and job switching remained low despite available vacancies.

This shows both employers and workers are cautious about making changes.

More job vacancies are also taking longer to fill, especially for specialised roles.

Labour turnover remained low, with fewer workers quitting their jobs.

This suggests workers are less confident about finding better opportunities.

Hiring plans among companies also remained cautious despite economic growth.

Overall, the labour market appears stable but lacks strong momentum.

Re-employment rates improved slightly, with more retrenched workers finding jobs within six months.

Most of those who found new jobs were able to maintain or improve their wages.

However, a significant number of workers were still unemployed after six months.

Economic growth forecasts for 2026 were revised upward, but hiring expectations remain modest.

Wage growth is also expected to stay limited as companies remain cautious.

While the labour market is not weakening, signs show it is no longer tightening and may be entering a slower phase.