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The proportion of firms planning to raise wages in 4Q declined from 22.4% in June to 19.3% in September across most sectors
By Walter Wong
According to advance estimates released by Singapore’s Ministry of Manpower (MOM), the labour market for 3Q was stronger than expected, with total employment more than double that of the previous quarter, while unemployment rates and retrenchments remained stable.
In its announcement on Oct 30, MOM attributed the “stronger than anticipated labour market conditions” to the continued strong performance of the economy, which expanded by 2.9% year-on-year in the same quarter, according to advance estimates by the Ministry of Trade and Industry (MTI) published on Oct 14.
A few months ago, on Aug 12, MTI had upgraded Singapore’s GDP growth forecast for 2025 from “0.0 to 2.0 per cent” to “1.5 to 2.5 per cent” due to the “better-than-expected” performance of Singapore’s economy in the first half of 2025.
Employment
For 3Q 2025, MOM said total employment grew by 24,800, surpassing both the previous quarter, 2Q (10,400), and the same quarter a year ago, 3Q 2024 (22,300).
Labour Market Advance Release Third Quarter 2025 (Ministry of Manpower)
MOM noted resident employment growth was concentrated in Health & Social Services and Financial Services. However, outward-oriented sectors did not fare as well. Residents refer to Singapore citizens and permanent residents.
“Global economic headwinds continued to impact outward-oriented sectors, resulting in subdued resident employment growth in Information & Communications and Professional Services, though there were improvements from the contractions in 2Q 2025,” said MOM.
Wholesale Trade, also an outward-oriented sector, saw a sharp decline in resident employment.
Non-resident employment contracted across these three outward-oriented sectors as well, but saw growth in Construction and Manufacturing.
The Labour Market Report Third Quarter 2025, to be released in mid-December, will provide more details on the employment breakdown of residents and non-residents.
Unemployment
The overall unemployment rate in September stayed low at 2%, which has remained consistent over the last four months.
The overall rate is consistent with the five-year range from 2015 to 2019 of between 1.8% and 2.3%.
For citizens, the unemployment rate in September was higher at 3% as compared with residents at 2.8%, both of which had also remained consistent over the last four months.
The higher unemployment rate for citizens was consistent with the five-year range from 2015 to 2019 of between 2.7% and 3.5%, as compared to the resident unemployment rate of between 2.5% and 3.3%.
Labour Market Advance Release Third Quarter 2025 (Ministry of Manpower)
Retrenchments
Retrenchments declined slightly from 3,540 to 3,500 in 3Q. According to MOM, the majority of retrenchments were due to business reorganisation or restructuring.
Labour Market Advance Release Third Quarter 2025 (Ministry of Manpower)
Hiring, Wage Expectations
Compared to the past quarter, hiring expectations of firms for the next quarter (4Q) rose slightly from 43.7% in June to 44.1% in September, but expectations varied across sectors, with outward-oriented sectors like Financial & Insurance Services and Information & Communications reporting weaker hiring sentiment.
“Resident employment growth may continue to lag that of non-residents, given the already high resident labour force participation rate,” said MOM.
The proportion of firms planning to raise wages in 4Q declined from 22.4% in June to 19.3% in September across most sectors, with the largest declines in the same two outward-oriented sectors of Financial & Insurance Services and Information & Communications.
The intention to raise wages by employers has been on a downward trajectory since December last year.
Looking forward, MOM expects employment growth to remain positive but uneven across sectors, while wage growth is expected to moderate.
Hiring and Wage Expectations for the Next Three Months (Ministry of Manpower)
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