SINGAPORE, Dec 12 — Retrenchments in Singapore rose to 3,670 in the third quarter of 2025, up from 3,540 in the previous quarter, while the percentage of firms planning redundancies increased to 2.3 per cent from 1.9 per cent in June, The Straits Times reported last night.
The retrenchment rate stood at 1.6 per 1,000 employees, and MOM said both the number and rate “remained low” despite the increase, the Singapore newspaper reported, citing from the Ministry of Manpower’s (MOM) Q3 labour report.
More employees were placed on short work-weeks or temporary layoffs, rising to 800 in Q3 from 620 in Q2, with the manufacturing sector seeing the biggest impact and non-PMETs (professionals, managers, executives, and technicians) making up about 66.7 per cent of those affected.
Retrenchments were concentrated in growth sectors such as financial services, professional services, and information and communications, while residents – citizens and permanent residents – made up 74.2 per cent, or 2,720, of those retrenched.
Job vacancies fell to 69,200 in September from 76,900 in June, though this was higher than the 63,400 openings in September 2024, and MOM noted the average monthly recruitment rate of 1.8 per cent continued to exceed the 1.2 per cent average resignation rate.
Since late 2022, both recruitment and resignation rates have been trending down and are now below 10-year averages, suggesting firms are managing headcount through natural attrition and employees are switching jobs less frequently, leading to lower labour mobility.
Pockets of tightness remain in PME roles across sectors such as information, communications, health, and social services, and the ratio of job vacancies to unemployed persons rose to 1.49 in September from 1.35 in June.
Total employment grew by 25,100 in Q3, more than double the 10,400 increase in Q2, with resident employment growth led by financial and insurance services as well as health and social services, and foreign employment growth concentrated in construction and manufacturing.
The proportion of residents finding jobs within six months of retrenchment fell slightly to 55.4 per cent in Q3, while the long-term unemployment rate remained steady at 0.9 per cent.
MOM cautioned that although economic uncertainties have eased since the first half of 2025, they remain elevated and will continue to moderate labour demand, and employers are increasingly relying on contract, part-time, and flexible arrangements to manage manpower costs.
Recruitment experts noted deeper structural shifts are reshaping sectors such as finance, technology, and professional services, with displaced workers coming from roles being automated, consolidated, or moved to lower-cost hubs, while new opportunities emerge in artificial intelligence, data, sustainability, and healthcare.