Singapore’s labour market shows resilience in 2025 despite effects of ageing population
Summary
Singapore’s labour market remained resilient in 2025 despite an ageing population and global uncertainty. The Ministry of Manpower’s Labour Force in Singapore Advance Release 2025 shows falling overall participation rates driven by demographic change, continued real income growth—especially for lower-wage workers—and a record high share of permanent employment. Job switching eased but still delivered income gains for most movers, while unemployment and labour underutilisation remained low.
Key Points
- Resident labour force participation edged down to 67.9% in 2025 (from 68.2% in 2024), largely due to population ageing, though Singapore remains high by OECD standards.
- Female participation (age 25–64) rose to 80.5% in 2025, with male participation at 91.8%.
- Real incomes increased: P20 median earnings rose to S$3,164 and P50 to S$5,775 in 2025; real income growth was 3.8% (P20) and 4.3% (median).
- Lower-wage workers saw faster earnings growth over five- and ten-year windows, supported by measures such as the Progressive Wage Model.
- Job mobility slowed (annual job switches fell from 7.6% to 6.2%), but about 60% of job switchers reported real income gains.
- Unemployment stayed low: PMETs at 2.8%; non-PMETs also at 2.8%; long-term unemployment fell to 0.6% (PMETs) and 0.5% (non-PMETs).
- Labour underutilisation remained minimal—discouraged workers roughly 0.3% and time-related under-employment down to 1.9%—while permanent employment hit 90.8% across industries.
- About 3.1% of the labour force (76,000 residents) had worked overseas for at least six months, most commonly in China, the US and Malaysia; mid-career workers were the most likely to have overseas experience.
- Government and tripartite initiatives (WSG Job Transformation Maps, Career Conversion Programmes, SkillsFuture, Tripartite Workgroup on Senior Employment, flexible-work guidelines) remain central to preparing workers for technological and demographic shifts.
Why should I read this?
Quick, useful snapshot — if you hire people, plan workforce strategy or run HR policy in Singapore, this is the one-paragraph version of what actually matters. It tells you where wages, hiring and job mobility are heading, who’s gaining, and which government supports you can tap into right now.
Context and relevance
The advance release provides an early, data-driven picture of how Singapore is handling two big trends: population ageing and technological change. For HR leaders, policymakers and employers, the findings confirm that wages and job stability are holding up, but demographic pressures will keep participation rates under strain. The report highlights the practical levers available — skills programmes, job redesign grants and tripartite initiatives — that firms and workers should use to stay competitive as AI, digitalisation and sustainability reshape roles.
