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World / Asia

Singapore's labor market continues to expand in Q2 despite global uncertainty

Published: 31 Jul 2026 - 06:48 pm | Last Updated: 31 Jul 2026 - 06:55 pm
File photo for representation showing construction workers near Singapore's financial business district. AFP.

File photo for representation showing construction workers near Singapore's financial business district. AFP.

Xinhua

Singapore: Singapore's total employment grew by 10,700 in the second quarter, marking the 19th consecutive quarter of growth, according to advance data released by the Ministry of Manpower.

The increase was driven mainly by non-resident employment, particularly in sectors such as construction and manufacturing, while employment among Singapore citizens and permanent residents grew at a slower pace than in the previous quarter, led by gains in essential and public services, the ministry said.

The overall unemployment rate remained unchanged at 2 percent in June, the same as in March.

The number of retrenchments rose to 4,500 in the second quarter from 3,830 in the first quarter, pushing the incidence of retrenchment up from 1.6 to 1.9 per 1,000 employees. The increase was concentrated in some outward-oriented sectors and was driven primarily by business restructuring.

"Nonetheless, retrenchments remained well below levels typically seen during periods of downturn," the ministry said, noting that quarterly retrenchments ranged from 5,980 to 12,760 during the 2009 global financial crisis and from 5,640 to 9,120 during the COVID-19 pandemic.

Forward-looking indicators improved in June, with the share of firms expecting to hire and raise wages over the next three months increasing, while the share of firms expecting to retrench declined.

"Labor demand is resilient, even as firms remain cautious given economic uncertainties and continued business restructuring in some sectors," the ministry said.

The employment figures exclude migrant domestic workers. According to the latest ministry data, Singapore had 316,900 migrant domestic workers as of December 2025.