Fewer job vacancies in Q3 due to reduced labour churn and slower hiring: MOM

Total employment grew by 25,100, above the 10,400 increase in the previous quarter.

UNEMPLOYMENT AND RETRENCHMENT

The quarterly unemployment rate for all residents, defined as Singaporeans and permanent residents, was unchanged from June at 2.8 per cent.

The overall unemployment rate, which considers non-residents, held steady at 2 per cent. The resident long-term unemployment rate was also unchanged at 0.9 per cent.

The resident unemployment rate for younger workers under 30 fell from 5.7 per cent in June to 5.5 per cent in September. This followed a first-time increase in the previous quarter.

The unemployment rate among older workers aged 60 and above also declined from 2.5 per cent in June to 2.1 per cent in September.

However, workers in their 50s saw the unemployment rate increase from 2.7 per cent in June to 3 per cent in September.

Workers in their 40s also saw an increase from 2.1 per cent in June to 2.2 per cent in September.

MOM said the unemployment rate for workers in their 50s remained within the pre-recessionary range of 2.5 and 3.6 per cent.

In this age group, a higher share of the unemployed have secondary or post-secondary education and are in jobs such as cleaners, labourers and clerical support workers.

Retrenchments stayed low at 3,670 in the third quarter, slightly up from 3,540 in the second quarter.

Retrenchments were concentrated in the financial services, professional services and information and communications as firms restructure to stay competitive against the backdrop of global economic uncertainty, said MOM.

It added that employers were choosing to place employees on short-work week or temporary layoff rather than retrench employees.

The number of employees placed on such arrangements went up by 800 in the third quarter compared to 620 in the second quarter.

Last month, Singapore upgraded its growth forecast to around 4 per cent, reflecting better-than-expected economic performance in the third quarter.

“Although economic uncertainties have receded since the first half of 2025, it remains elevated and will continue to weigh on firms, pointing to a moderation of labour demand,” said MOM.

“Looking ahead, business expectations show firms are more cautious in their intentions to hire or raise wages in the coming three months.

“At the same time, the share of firms planning redundancies has risen from 1.9 per cent in June 2025 to 2.3 per cent in September 2025.

“Outward-oriented firms continue to show relatively stronger hiring intent, although they are less likely than domestic-oriented firms to raise wages.”