MOM also said that the percentage of firms planning redundancies has risen from 1.9 per cent in June to 2.3 per cent in September. - ST
SINGAPORE: The number of retrenchments in Singapore went up in the third quarter of 2025 after dipping in the previous two quarters, while job vacancies continued to dip further.
The number of retrenchments stood at 3,670, up from 3,540 in the previous quarter, according to the Ministry of Manpower’s third-quarter labour report released on Dec 11.
The percentage of firms planning redundancies also rose, from 1.9 per cent in June to 2.3 per cent in September, the report showed.
More employees were also placed on short work-week or temporary layoff - 800 in third quarter from 620 in the second quarter - as employers tried to avoid retrenchments.
MOM said the rate of retrenchment - 1.6 per 1,000 employees - and the number of retrenchments (3,670) “remained low”.
The retrenchments were concentrated in growth sectors such as financial services, professional services and information and communications.
Residents - meaning citizens and permanent residents - accounted for 74.2 per cent or 2,720 of those retrenched in the July to September quarter.
There were 69,200 job openings in September, down from 76,900 in June, according to MOM. This was also lower than the 63,400 job vacancies in September 2024.
But MOM noted that the average monthly recruitment rate in the third quarter stood at 1.8 per cent, which has “consistently exceeded” the average monthly resignation rate of 1.2 per cent post-pandemic.
The ministry added that since late 2022, both recruitment and resignation rates have been trending down, and are now lower than their ten-year averages of 2.1 per cent and 1.6 per cent respectively.
“This suggests that firms are managing headcount through natural attrition rather than actively laying off workers. Employees, who are perceiving fewer opportunities, are also switching jobs less frequently. The result is lower labour mobility,” said MOM.
Against the falling job vacancies, there were fewer job seekers, resulting in a rise in the ratio of job vacancies to unemployed persons. There were 1.49 job vacancies for every unemployed person in September, compared with 1.35 in June.
Total employment grew by 25,100 in the July to September period, more than double the 10,400 increase in April to June period.
Singapore has enjoyed 16 consecutive quarters of employment growth that peaked at 124,400 in March 2022. The pace of growth when viewed longer-term has been declining.
Growth in resident employment was led by the financial and insurance services, and health and social services sectors. Meanwhile, foreign employment’s growth was most pronounced in the construction and manufacturing sector.
MOM noted that outward-oriented firms continue to show relatively stronger hiring intent, although they are less likely than domestic-oriented firms to raise wages.
Post-retrenchment, the proportion of residents who found jobs within six months of being laid off continued to drop in the third quarter to 55.4 per cent - down from 56.3 per cent in the second quarter.
The resident long-term unemployment remained steady at 0.9 per cent in September, which remains unchanged from the past quarters in 2025.
“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. - The Straits Times/ANN
