Singapore Labour Market Report 1Q2025. Skills-Based Talent HR Strategy in APAC
In this month’s newsletter, we share key insights from MOM’s 1Q2025 Labour Market Report highlighting recent employment trends, to the launch of mindline 1771, a new 24/7 mental health support line by the Institute of Mental Health.
Plus, we spotlight findings from Aon’s 2025 APAC Skills Impact Survey, which shows how more organisations are putting skills at the heart of their HR strategies — from hiring to succession planning.
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Recruitment Agency Singapore
Labour Market Report 1Q2025
The Ministry of Manpower has released the Labour Market Report 1Q2025 on 27 Jun,2025. We will share highlights of the report.
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Total Employment
The labour market showed slower growth in 1Q 2025 compared to the previous quarter. Total employment increased by 2,400, with 300 resident and 2,000 non-resident workers. This is a decline from 7,700 new jobs in 4Q 2024.
Resident employment growth varied across industries. Health & Social Services and Financial & Insurance Services saw gains, while sectors like Professional Services and Information & Communications experienced declines.
Non-resident growth was primarily driven by Work Permit holders, especially in roles such as bus and truck drivers, where resident applicants are less common.
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Unemployment
Unemployment rates saw a slight uptick in March 2025, with overall
unemployment at 2.0%, resident at 2.9%, and citizen at 3.1%. Long-term unemployment among residents also inched up from 0.8% in December 2024 to 0.9%, but remained within typical non-recessionary levels.
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Retrenchment
Retrenchments saw a slight decline from 3,680 in 4Q 2024 to 3,590 in 1Q 2025. The retrenchment rate remained steady at 1.5 per 1,000 employees, well within non-recessionary norms (1.7 per 1,000 employees from 2014 to 2019).
Fewer employees were placed on short work-week or temporary layoff, dropping from 660 to 570. Additionally, the resident re-entry rate into employment within six months after retrenchment improved from 58.1% in 4Q 2024 to 60.6% in 1Q 2025.
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Job Vacancy
Job vacancies rose from 77,500 in December 2024 to 81,100 in March 2025, pushing the vacancy rate up from 3.1% to 3.2%. Most sectors saw more openings, except Manufacturing, where vacancies dipped slightly. Around 70% of vacancies were roles likely to be filled by residents, mostly in expanding or growth sectors.
Both job vacancies and unemployment rose in March 2025, keeping the ratio of job vacancies to unemployed persons similar to the previous quarter.
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Labour Market Outlook
The global economic outlook remains uncertain, though Singapore’s external demand has shown slight improvement due to de-escalating global trade tensions. The US and China agreed to reduce tariffs for 90 days while negotiating a trade deal.
In response, firms are taking a cautious approach to manpower planning. A recent poll in April and May 2025 revealed a modest increase in hiring intentions, with 42.2% of firms planning to hire in 3Q 2025, up from 40.5% for 2Q 2025. This increase was mainly driven by sectors like Professional Services and Financial Services, while hiring sentiments softened in other sectors.
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Recruitment Agency Singapor
New 24/7 Mental Health Support Line
Looking to strengthen mental wellness in your workplace?
Singapore has launched national mindline 1771, a 24/7 mental health call and textline operated by the Institute of Mental Health.
Part of the National Mental Health and Well-neing Strategy, this free and confidential service offers immediate access to trained counsellors via phone, WhatsApp, or online chat—available in all four official languages.
📞 1771 | 💬 WhatsApp: +65 6669 1771 | 🌐 https://mindline.sg/fsmh
HR plays a big part in creating a workplace where people feel safe to speak up and get support. Sharing this resource with your employees is a simple but important step toward creating a more open and supportive workplace.
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Skills-Based Talent Strategy in APAC: Key Insights for HR
The 2025 Skills Impact Survey by Aon reveals how organisations across Asia Pacific are putting skills at the centre of their HR strategies — from talent attraction to succession planning.
Here’s what HR teams in Singapore should know to stay ahead.
Why Skills Matter in 2025
- 90% of companies in APAC say skills-based strategies are critical to their HR roadmap.
- 61% have already rolled out skills-based initiatives — especially for leadership, talent retention, and workforce agility.
- In Singapore, employers are prioritising:
- Attracting and retaining talent
- Building a future-ready workforce
- Developing strong leadership pipeline
Singapore shows higher-than-average adoption of:
- Skills frameworks (61% use role-specific frameworks)
- Objective assessment tools and KPIs (15%)
- Performance metrics linked to skill application
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Where Skills Are Applied Across HR Practices
Organisations are seeing the biggest impact of skills integration in:
- Career Development & Mobility
Skills are now used to build structured career paths that support lateral moves across functions and levels. This will remain a major area of investment in the next 24 months. - Learning & Development
Companies are using skill gaps to identify training needs and increasingly offering personalised learning with success metrics tied to skills. - Recruitment & Selection
While internal development is ideal, it takes time. Many firms continue to focus on hiring for technical skills, with a rising interest in behavioural assessments for future readiness. - Compensation & Rewards
Despite much discussion, skills-based pay is still rare. This remains a growth opportunity for companies to link pay and performance more meaningfully to skills.
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Barriers for Skills Initiatives Progression
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Despite tight budgets, most organisations are still investing, with 39% maintaining their skills budgets and 24% increasing them. This reflects a strong commitment to workforce development, even in uncertain times.
However, 11% still have no dedicated skills budget.
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Looking Ahead: Shifting to a Skills-Focused Talent Strategy
The 2025 APAC Skills Impact Survey reinforces that skills are central to shaping future-ready organisations — influencing decisions in hiring, development, and succession planning.
While many companies have started their skills journey, key challenges remain — including inconsistent data, fragmented frameworks, and limited integration into HR processes.
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Recommendations:
- Prioritise skills development and use people analytics to drive better talent decisions.
- Go beyond just having a framework — align it with job architecture and external benchmarks.
- Embed skills data into HR programmes like performance management and recognition for greater impact.
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