FX.co ★ Singapore Q1 Jobless Rate Highest in A Year

Singapore's seasonally adjusted unemployment rate has increased to 2.1% in the first quarter of 2025, rising from 1.9% recorded in the preceding three quarters, based on a preliminary estimate. This represents the highest unemployment level in a year, attributed to diminished economic activity and growing global trade tensions. While retrenchments have slightly decreased to 3,300 from 3,680 in the fourth quarter, most industries are experiencing stable or reduced layoffs. The primary reason for retrenchments remains business reorganization or restructuring. Concurrently, total employment growth has notably decelerated, with figures recording 2,300 compared to 7,700 in the fourth quarter and 3,200 in the same quarter of the previous year, Q1 2024. This slowdown is evident among both resident and non-resident employment categories. The downturn in employment, particularly in sectors focused on exports, signals a change in labor market trends. Looking ahead, the deteriorating economic forecast is anticipated to influence corporate hiring and wage expectations. Government-led surveys conducted in March revealed that business sentiment has become more cautious, contrasting with the more optimistic outlook observed in December 2024.