Singapore's labour market shows resilience in 2025 despite effects of ageing population

Real incomes rose and most employees remained in permanent roles in 2025, even as overall labour force participation dipped slightly. Job mobility slowed, but most movers still saw income gains, highlighting continued opportunities for career growth.

Singapore’s labour market held up well in 2025, showing signs of resilience even as the population aged and global uncertainties persisted. Real incomes continued to grow, labour underutilisation stayed low, and permanent employment reached a record high. Fewer residents switched jobs compared with the previous year, but those who did largely experienced income gains.

These findings come from the Labour Force in Singapore Advance Release 2025, published by the Ministry of Manpower’s Manpower Research and Statistics Department. The report offers early insights from the Comprehensive Labour Force Survey, providing a snapshot of Singapore’s workforce in a changing economic landscape.

Labour force participation edges down

For the fourth year in a row, the resident labour force participation rate for those aged 15 and over fell slightly. It declined from 70.5% in 2021 to 68.2% in 2024 and 67.9% in 2025. Population ageing was a key factor in this trend, yet participation across most age groups remained broadly stable. Singapore’s overall participation rate continues to rank among the highest in Organisation for Economic Co-operation and Development (OECD) countries.

Among residents aged 25 to 64, female participation rose sharply over the past decade, from 74.1% in 2015 to 80.5% in 2025. Male participation remained high at 91.8%, demonstrating continued progress towards a more inclusive workforce.

Real incomes on the rise

Workers at both the 20th percentile (P20) and median (P50) saw increases in nominal earnings. P20 workers earned S$3,164 in 2025, while P50 earned S$5,775, an increase from S$3,026 and S$5,500 in 2024. After adjusting for inflation, real incomes rose by 3.8% for P20 workers and 4.3% for median workers. Over five- and ten-year periods, lower-wage workers experienced faster income growth than the median.

The Progressive Wage Model (PWM) continued to lift lower-income workers, narrowing the wage gap. The P20 to P50 income ratio reached 0.55 in 2025, an increase from 0.52 in 2020 and 0.51 in 2015. This reflects ongoing efforts to support equitable income growth alongside productivity gains.

Job mobility slows but remains meaningful

The share of residents who switched jobs in the past year fell from 7.6% in 2024 to 6.2% in 2025. Younger workers aged 25 to 29 were particularly less likely to change jobs, partly due to reduced job-seeking activity. Despite this, six in ten job switchers reported real income gains, showing that job moves continued to provide opportunities for career progression.

Unemployment remains low

Unemployment rates remained low and stable across occupational groups. Professionals, managers, executives and technicians (PMETs) maintained an unemployment rate of 2.8%, while non-PMETs fell from 3.4% to 2.8%. Long-term unemployment also eased for both groups, falling to 0.6% for PMETs and 0.5% for non-PMETs.

Labour underutilisation minimal, permanent jobs at a record high

The number of discouraged workers stayed low at 7,400, or 0.3% of the resident labour force. Time-related under-employment declined to 1.9% in 2025, a decrease from 2.3% in 2023 and 2024. Meanwhile, permanent employment reached a new high of 90.8%, with increases seen across most industries, including professional services, health & social services, as well as information & communications.

Preparing for the future

The overall labour market performed well in 2025 despite global economic headwinds, though uncertainties are expected to continue affecting hiring, particularly in outward-oriented sectors. To maintain positive outcomes, the government continues to focus on supporting workers in building relevant skills and finding careers suited to their professional abilities and personal needs.

Investing in Singaporeans remains a top priority, with both employers and workers encouraged to take full advantage of available programmes. Employers can refer to Workforce Singapore (WSG)’s 19 Jobs Transformation Maps (JTM) to understand the impact of trends such as artificial intelligence, digitalisation, and sustainability on their sectors. These tools help businesses identify future skill requirements, redesign jobs, and reskill employees for emerging roles. Support is also available through the Productivity Solutions Grant for job redesign, Career Conversion Programmes with up to 90% salary support, and the Mid-Career Pathways Programme for mature workers.

Workers can use Career Health SG and the CareersFinder feature on MyCareersFuture to explore training and career options. Career coaching and guidance are offered through WSG and NTUC’s Employment and Employability Institute (e2i), while SkillsFuture programmes and Workfare Skills Support help employees, particularly lower-wage workers, improve skills and career mobility.

The government, together with NTUC and SNEF, is reviewing senior employment policies through the Tripartite Workgroup on Senior Employment to promote age-friendly jobs and workplaces. Flexible work arrangements, including flexi-hours and flexi-load, as well as the Tripartite Guidelines on Flexible Work Arrangement Requests, aim to support workers who face personal constraints such as caregiving. Workplace Fairness Legislation further strengthens protections against discrimination, helping to create inclusive workplaces that attract and retain talent across multiple generations.

Overseas work experience most common among mid-career workers

In 2025, around 3.1% of Singapore’s labour force, or 76,000 residents, had worked overseas full-time for at least six months. Overseas experience was most prevalent among mid-career employees in their 40s (4.6%) and 50s (4.5%). Many of these workers began their first overseas stint between the ages of 25 and 34, accounting for 53.7% of those with international experience. Given that workers tend to make more job moves in their younger years, there is potential to encourage early planning for overseas stints to build skills and progress into leadership roles.

Among residents with overseas work experience, the most popular destinations were mainland China, the United States, and Malaysia. Close to one in five (18.3%) had most recently worked in China, primarily in the manufacturing sector. The United States was the next most common destination, with 13.6% of workers typically employed in growth industries such as professional services, information and communications, and financial and insurance services. Malaysia accounted for 10.1% of residents with overseas experience, with employment concentrated in manufacturing and construction.

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Infographic / MOM

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