Singapore Labour Market 2025: What Employers Need to Know — MOM Annual Report Summary

Gabriel Rodrigues
Apr 14
3 min read

Updated: 2 days ago

Every year, the Ministry of Manpower's Manpower Research & Statistics Department publishes its Labour Force in Singapore report — one of the most comprehensive snapshots of how Singapore's workforce is performing. Here's what the 2025 edition, together with the Q4 2025 Labour Market Report, tells us — and what it means for employers hiring right now.

Singapore's Economy Grew Strongly — But the Workforce Is Tightening

Singapore's economy grew 6.9% year-on-year in Q4 2025 and 5.0% for the full year of 2025, driven by manufacturing, wholesale trade, and related sectors. Strong GDP growth is good news for business confidence — but it also means competition for workers is intense.

Total employment grew by 25,100 in Q3 2025 alone, more than double the 10,400 increase in Q2 2025, driven by robust hiring in financial services, health and social services, and non-resident hiring in construction and manufacturing.

What this means for employers: The labour market is tight and getting tighter. If you are waiting for candidates to come to you, you will wait a long time. Proactive sourcing through a licensed agency is increasingly the faster path to placement.

Work Permit Holders in Construction Continue to Drive Non-Resident Employment Growth

In 2025, non-resident employment growth was driven by the continued increase in Work Permit holders in construction. This reflects the ongoing reliance of Singapore's construction sector on foreign manpower — and the importance of getting Work Permit applications right.

What Stagencies does: We manage the full Work Permit lifecycle — application, renewal, security bond, entry approval, and post-arrival logistics — so your project isn't held up by paperwork.

Job Vacancies Still Exceed Unemployed Persons — A Seller's Market for Workers

Labour demand remained firm. The overall job vacancy to unemployed persons ratio increased from 1.50 in September 2025 to 1.58 in December 2025, indicating that job vacancies continued to exceed the number of unemployed persons. A ratio above 1.0 means there are more jobs than people to fill them — employers need to move quickly when a good candidate is available.

Wages Are Rising — Plan Your Hiring Budget Accordingly

Workers at the median earned S$5,775 per month in 2025, while those at the 20th percentile earned S$3,164 — up from S$5,500 and S$3,026 respectively in 2024. After adjusting for inflation, real incomes rose by 4.3% at the median and 3.8% for lower-wage workers. The Progressive Wage Model continues to lift wages in lower-income segments. Employers in cleaning, F&B, and retail should factor PWM-adjusted wage floors into their hiring budgets.

The Resident Workforce Is Shrinking — Non-Resident Hiring Will Remain Essential

Singapore's labour force participation rate for residents above 15 fell for the fourth consecutive year, declining from 68.2% in 2024 to 67.9% in 2025, driven primarily by population ageing and increased retirements. With fewer residents entering the workforce each year, employers — especially in construction, F&B, and household services — will continue to depend on non-resident workers to fill the gap.

Key Takeaways for Singapore Employers

Construction firms: Non-resident Work Permit hiring remains the backbone of the sector. Start permit applications early — MOM processing times and quota approvals take time.
F&B operators: Wages are rising and the PWM applies. Budget accordingly, and use an agency that can source quickly.
SMEs hiring for the first time: The vacancy-to-unemployed ratio above 1.5 means you are competing for a limited pool of local candidates. Understanding your S Pass and Work Permit options broadens your hiring options significantly.
All employers: The market favours workers right now. Speed of offer and quality of onboarding matter more than ever.

Stagencies Pte Ltd (EA Licence No. 19C9576) is a MOM-licensed employment and recruitment agency based in Singapore. We help employers across construction, F&B, education, corporate, and household services hire the right people — compliantly and efficiently. Contact us for a free consultation.

Sources: MOM Labour Force in Singapore Advance Release 2025; MOM Labour Market Report Q4 2025; MOM Labour Market Report Q3 2025.