Singapore’s job market experienced a notable cooling in the third quarter of 2025, marked by a climb in retrenchments and a continued decline in job vacancies, according to the latest labour report from the Ministry of Manpower (MOM).
The data, released on December 11, revealed that the number of workers retrenched in the July to September period stood at 3,670. This represents an increase from the 3,540 recorded in the previous quarter, indicating rising economic headwinds facing the local workforce.
Retrenchments Concentrated in Growth Sectors
The increase in layoffs was most pronounced in growth-oriented sectors, with retrenchments concentrated in financial services, professional services, and information and communications. Residents, comprising citizens and permanent residents, accounted for a substantial 74.2 per cent, or 2,720, of those laid off during the quarter. Furthermore, the percentage of firms planning redundancies rose from 1.9 per cent in June to 2.3 per cent in September.
MOM noted that while the overall retrenchment rate remains low at 1.6 per 1,000 employees, other indicators point to caution among employers. More employees were placed on a short work-week or temporary layoff, rising to 800 in Q3 from 620 in Q2, particularly in the manufacturing sector.
Job Vacancies Continue to Decline
The moderation in labour demand was clearly visible in the job vacancy figures. The total number of job openings in Singapore fell to 69,200 in September, a decrease from 76,900 in June.
MOM attributed the overall moderation to lower rates of resignations and terminations, alongside slower hiring activity. The report suggested that “firms are managing headcount through natural attrition rather than actively laying off workers.”
Despite the overall slowdown, the ratio of job vacancies to unemployed persons edged up to 1.49 in September, from 1.35 in June, driven by a simultaneous fall in the number of job seekers. The ministry also highlighted that “pockets of tightness persist,” particularly for Professionals, Managers, Executives, and Technicians (PMET) roles in the information and communications, and health and social services sectors.
Re-entry Rate for Retrenched Residents Falls
While total employment grew by 25,100 in the third quarter, accelerating from the 10,400 increase in the second quarter, the challenge for displaced workers appears to be growing.
The proportion of residents who found new employment within six months of being laid off continued to fall, dropping to 55.4 per cent in Q3 from 56.3 per cent in the second quarter.
Industry experts suggest that structural shifts, including automation and consolidation, are reshaping sectors such as finance and technology, contributing to longer job searches for retrenched workers seeking comparable permanent roles. Companies are also increasingly leveraging contract, part-time, and flexible talent to manage costs amid ongoing economic uncertainties.
