Labour Market Report Q2 2025
In this month’s newsletter, we bring you the latest updates on Singapore’s labour market and HR news. The Ministry of Manpower released the Labour Market Report for Q2 2025, and we will be sharing some key highlights.
From 1 October 2025, HR professionals can also take advantage of an enhanced subsidy for IHRP certifications, making accreditation more affordable and accessible. The Employment Standards Report 2024 showed that over 80% of employment claims were resolved through mediation by TADM, highlighting the value of fair workplace practices.
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Labour Market Report Q2 2025
The Labour Market Report 2Q 2025 has been released by Ministry of Manpower on 17th September, 2025. Here are the takeaways.
Total Employment
The labour market held steady in 2Q 2025, supported by Singapore’s ongoing economic growth.
Total employment rose by 10,400, comprising 2,600 residents and 7,800 non-residents—a stronger showing compared to the modest gains in 1Q 2025 (200 residents; 2,000 non-residents).
Resident employment growth was driven by sustained demand in Financial & Insurance Services and Health & Social Services. Non-resident employment growth came largely from Work Permit holders, filling roles such as construction labourers and drivers, which typically see lower take-up among residents.
*Click on image to enlarge
Unemployment
In June 2025, the overall unemployment rate remained unchanged from March at 2.0%.
For residents, unemployment eased slightly from 2.9% to 2.8%, while for citizens, it fell from 3.1% to 2.9%.
The resident long-term unemployment rate also held steady at 0.9%, reflecting ongoing stability in job prospects.
*Click on image to enlarge
Retrenchment
The incidence of retrenchments stayed low at 1.4 per 1,000 employees, with the number of retrenched workers easing slightly from 3,590 in 1Q 2025 to 3,540 in 2Q 2025.
The resident re-entry rate into employment within six months of retrenchment dipped from 60.6% to 56.3%, driven mainly by non-PMETs.
Meanwhile, the number of employees placed on short work-weeks or temporary layoffs remained low at 620 in 2Q 2025.
*Click on image to enlarge
Job Vacancy
Job vacancies eased but remained high. The number of job vacancies decreased from 81,100 in March 2025 to 76,900 in June 2025, and correspondingly the job vacancy rate decreased from 3.2% in March 2025 to 2.9% in June 2025.
Nonetheless, there remained more vacancies than the number of jobseekers, with the ratio standing at 1.35.
*Click on image to enlarge
Outlook
In Aug 2025, Ministry of Trade and Industry (MTI) upgraded Singapore’s 2025 GDP growth forecast to 1.5%–2.5%, but growth is expected to moderate in 2H 2025 after the strong 1H performance. Global uncertainties pose downside risks, weighing on hiring and wages in outward-oriented sectors.
Even so, the labour market is projected to remain resilient, with firms likely to respond by slowing new hires, moderating wage increases, and adopting short work-week arrangements. Retrenchment intentions remain low, though have edged up slightly.
Click here for full Labour Market Report 2Q 2025
Enhanced Subsidy for HR Professionals to Obtain IHRP Certification from 1 Oct 2025
From 1 October 2025, eligible HR professionals can enjoy a S$100 flat-rate subsidy on IHRP certifications, further lowering the cost of professional accreditation.
Key details:
- Certification fees for Singapore Citizens and PRs will now range from $163.50 to $272.50 (inclusive of GST) after subsidy.
- The enhanced subsidy will be available for one year
- IHRP certification provides access to recognised HR standards, resources, and a growing network of HR leaders and practitioners
This initiative, first announced by the Singapore Economic Resilience Taskforce (SERT), is part of a national initiative to help employers better manage and support their workforce amid the volatile environment. By equipping HR professionals with the right skills and recognition, businesses can better navigate change while supporting their workforce.
Learn more at https://ihrp.sg/
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Over 80% of employment Claims in Singapore Resolved Through Mediation in 2024
According to the Employment Standards Report 2024, over 80% of employment claims were settled through mediation by the Tripartite Alliance for Dispute Management (TADM).
- 80%+ of employment claims resolved amicably through mediation
- 90% of salary claims concluded at TADM, with 9 in 10 employees fully recovering owed wages
- 71% of wrongful dismissal cases settled at TADM, most within 2 months
Mediation continues to protect employees while enabling businesses to resolve disputes quickly and fairly — building trust and workplace harmony.
Click here to read the full report
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