Singapore Employment Growth Moderates to 5,000 in Q1 2026 as Labour Market Stays Resilient

MOM attributed the quarter-on-quarter easing to seasonal effects, with Chinese New Year falling in Q1 and construction activity typically slowing during the festive period. After adjusting for seasonality, employment growth is estimated at about 9,200 in Q1 – higher than the same period a year ago but lower than the previous quarter.

The ministry noted that this adjustment removes recurring seasonal influences such as increased hiring during year-end festivities, which can obscure the underlying trend in a time series.

Employment grew for both residents and non-residents. For residents, the expansion was concentrated in transportation and storage as well as administrative and support services. Non-resident growth was driven by construction, though at a slower pace than in Q4 2025.

Unemployment rates stayed low and broadly stable in Q1 2026. The overall rate edged up slightly to 2.1 per cent from 2.0 per cent in February, while the resident rate rose to 2.9 per cent from 2.8 per cent and the citizen rate reached 3.1 per cent from 2.9 per cent. These figures remain broadly similar to levels seen in December 2025.

Retrenchments held steady at 3,700 workers in Q1, virtually unchanged from the 3,690 recorded in Q4 2025. MOM said retrenchments were stable or declined across most sectors, with the majority occurring due to business reorganisation or restructuring rather than demand-side weakness.

The incidence of retrenchment stood at 1.5 per 1,000 employees – a level consistent with a healthy labour market by historical standards.

While the headline employment numbers remain positive, forward-looking indicators suggest businesses are becoming more guarded. The share of firms expecting to hire in the next three months declined to 44.6 per cent in March, down from 54.6 per cent in February. Expectations for wage increases also fell, from 39.3 per cent to 25.4 per cent over the same period.

MOM warned that businesses are likely to be more cautious in their hiring and wage plans against the backdrop of increased economic uncertainty and ongoing geopolitical tensions stemming from the conflict in the Middle East, which began at the end of February.

The ministry stressed the importance of investing in human capital amid global headwinds, highlighting support schemes for employers, workers, fresh graduates and the involuntarily unemployed. Detailed figures for resident and non-resident employment will be released in mid-June alongside job vacancy data.

A resilient labour market is one of the key pillars supporting property demand in Singapore. With employment still expanding and unemployment rates near historic lows, the fundamental driver of housing demand – household income stability – remains intact for now.

However, the cooling in hiring and wage expectations bears watching. If the trend deepens through Q2 and Q3, it could temper upgrader demand in the private residential market and slow the pace of HDB resale price growth. The construction sector’s reliance on non-resident labour also means that any tightening in foreign worker policies could affect project timelines and new launch supply schedules.

For buyers and investors, the current data suggests a market that remains supportive but is entering a phase where economic caution could cap the pace of price appreciation rather than reverse it.