Singapore adds more jobs in Q1 of 2026 but fewer firms planning to hire, raise salaries

SINGAPORE – Singapore’s labour market continued to expand in the first quarter of 2026, but signs of caution are emerging as employers pull back on hiring plans.

Unemployment rates remained low and broadly stable. The overall rate edged up to 2.1 per cent in March, from 2 per cent in December 2025. Among citizens, the rate is 3.1 per cent, up from 3 per cent in the last quarter.

The preliminary data was released by the Ministry of Manpower (MOM) on April 30.

Singapore’s total employment grew by 5,000 in the first quarter of 2026, extending a streak of 18 consecutive quarters of jobs growth.

This was higher than the 2,300 jobs added in the first quarter of 2025, but a sharp slowdown from the 17,700 recorded in the last quarter of 2025.

The slower pace was largely due to seasonal factors and a high base, rather than a broad weakening in labour demand, MOM said.

Jobs portal Indeed’s senior economist Callam Pickering pointed out that the gain of 5,000 people in the workforce was on “the low end”, even after accounting for seasonality, potentially marking a shift after a few quarters of relatively strong growth.

“Gains were a little stronger than this time last year, but that doesn’t mean we should expect that for the remainder of the year. Not in this geopolitical environment,” he said.

He added that the uncertainty will make it more difficult for businesses to plan ahead and understand their staffing needs.

MOM added that employment growth among Singaporeans and permanent residents was concentrated in sectors like transportation and storage, and administrative and support services.

Meanwhile, non-resident employment growth was still led by construction, but it slowed compared with the previous quarter.

Ms Yang Li, Asia-Pacific immigration leader at global mobility firm Vialto, said these sectors are “less discretionary and less immediately exposed to global demand swings”.

Some 3,700 workers were retrenched in the first quarter of 2026, up from 3,590 in the first quarter of 2025 and 3,690 in the last quarter of 2025.

For every 1,000 employees, 1.5 people were retrenched in the January to March period, the same as the last quarter.

Looking ahead, MOM said firms will remain cautious in their hiring and wage plans amid geopolitical tensions, based on its polls in February and March.

The proportion of firms expecting to hire in the next three months fell from 54.6 per cent in February to 44.6 per cent in March.

The share of firms expecting to raise salaries in the next three months also dropped from 39.3 per cent to 25.4 per cent over the same period.

MOM said hiring sentiments have yet to recover to February levels – before the Middle East conflict began – despite early signs of stabilisation in April.

“This suggests a more measured pace of hiring and emerging caution among firms, with potential softening if external conditions weaken,” said MOM.

Separate data from Jobstreet by SEEK showed that job postings rose slightly quarter on quarter by 1.9 per cent, but they remained lower than a year ago. Meanwhile, applications have surged by 14.8 per cent.

While this could point to a more competitive market, it could also be a sign that people are testing the job market by applying for more jobs on the platform, a spokesperson for Jobstreet by SEEK said.

On Indeed, job postings fell by 2.8 per cent in March from December 2025, continuing a three-month downward trend.

Mr Pickering said Singapore is still creating more than enough jobs to keep the unemployment rate low.

“However, if job postings continue to decline, as we expect, then that may soon not be the case.”

Official data from MOM released in March showed that job vacancies continued to outnumber job seekers.