Preliminary data released on Thursday, April 30, revealed that employment growth in Singapore for the first quarter of 2026, while moderating from the previous quarter, was stronger compared to the same period a year earlier.

The data indicated that the labor market maintained its resilience in Q1 2026, marking the 18th consecutive quarter of total employment expansion. However, it was noted that businesses are anticipated to adopt a more cautious approach towards hiring and wage increases due to economic uncertainty stemming from geopolitical tensions.

Total employment, excluding migrant domestic workers, increased by 5,000 in the first quarter. This represents a slowdown from the growth of 17,700 in the fourth quarter of 2025 but is higher than the increase of 2,300 recorded in the first quarter of 2025.

The quarter-on-quarter moderation was attributed to seasonal factors, including the occurrence of the Chinese New Year holiday in Q1, and a step-down from a previously high base, rather than indicating a broad-based weakening of the labor market.

For example, construction activity typically slows during the Chinese New Year period.

After seasonal adjustment, employment growth for Q1 is estimated at approximately 9,200. This adjusted figure remains higher than the year-ago period but lower than the previous quarter. Seasonal adjustment removes recurring influences like festive hiring but may obscure underlying trends and short-term fluctuations.

Employment increased for both residents and non-residents, though at a slower pace than in Q4 2025. Growth for residents was concentrated in sectors like transportation, storage, administrative, and support services, while growth for non-residents was primarily driven by the construction sector.

Meanwhile, unemployment rates remained low and broadly stable.

Rates saw a slight uptick in March: the overall rate rose to 2.1% from 2.0% in February; the resident rate increased to 2.9% from 2.8%; and the citizen rate rose to 3.1% from 2.9%.

These figures were broadly similar to those from December 2025, when the overall unemployment rate was 2.0%, the resident rate was 2.9%, and the citizen rate was 3.0%.

The retrenchment incidence remained low and unchanged from the previous quarter, at 1.5 per 1,000 employees in Q1 2026. The number of retrenchments, at 3,700, was also similar to the 3,690 recorded in Q4 2025.

Retrenchments were stable or declined across most sectors, with the majority occurring due to business reorganization or restructuring.

The labor market is expected to remain tight and continue its expansion.

However, a warning was issued that businesses are likely to be more cautious in their hiring and wage plans against the backdrop of increased economic uncertainty caused by ongoing geopolitical tensions, including conflict in the Middle East that began in late February.

The proportion of firms expecting to hire in the next three months declined to 44.6% in March from 54.6% in February. Similarly, the share of firms expecting to raise wages fell to 25.4% from 39.3% over the same period.

Although there are early signs of stabilization in April, expectations remain below pre-crisis levels seen in February. This suggests a more measured pace of hiring, with potential for softening if external economic conditions weaken.

Highlighting the importance of investing in human capital amid global headwinds, support schemes for employers, workers, fresh graduates, and the involuntarily unemployed were emphasized.

Detailed figures for resident and non-resident employment, along with other indicators such as job vacancies, are scheduled for release in mid-June.