The Labour Market Report for the Second Quarter of 2025 indicates a cooling but resilient labour market in Singapore, characterized by a continued increase in employment alongside moderating retrenchments and job vacancy rates.

Key Findings

1. Employment Growth Continues: Total employment continued to expand, although the pace of growth moderated compared to previous quarters. The expansion was largely driven by non-resident employment in sectors like Construction and Services, while resident employment saw slower but steady growth.
2. Job Vacancies Decline: The ratio of job vacancies to unemployed persons eased slightly but remained above pre-pandemic levels, indicating that the labour market is still tight, but the pressure on employers to hire is easing.
3. Retrenchments Stabilize: The number of retrenchments remained stable quarter-on-quarter, continuing to be concentrated primarily in the Electronics and Information & Communications Technology (ICT) sectors, reflecting global economic slowdowns and industry-specific restructuring.
4. Unemployment Rates Remain Low: Overall unemployment rates remained low and stable across the board (for residents, citizens, and the overall workforce), reflecting near-full employment conditions.
5. Re-entry into Employment: The report highlights strong success in the re-entry rate of retrenched residents back into employment, suggesting effective job matching and continuous demand for local talent.

In summary, the labour market in Q2 2025 is transitioning towards a more sustainable growth trajectory, with hiring demand softening slightly while remaining generally healthy, and a continued focus on economic restructuring impacting specific high-tech sectors.