SINGAPORE: Singapore’s job market kept growing in 2025, but most of the new positions went to non-residents instead of locals.
According to the Ministry of Manpower’s (MOM) Labour Market Report for the fourth quarter of 2025, total employment rose by 55,500 last year, up from 44,500 in 2024. Out of those new jobs, 43,900 went to non-residents, while residents took up 11,600.
That means nearly 80% of the jobs created in 2025 were filled by foreign workers, a figure likely to reignite a familiar Singapore debate about jobs, wages, and whether locals are still benefiting enough from economic growth.
MOM said Singapore’s resident labour force participation rate for people aged 25 to 64 stands at 85.9%, among the highest globally. In simple terms, there are fewer untapped local workers left to enter the workforce.
Where did the jobs go?
Resident employment growth was mostly concentrated in higher-skilled industries such as financial services and health and social services.
Non-resident growth came largely from construction, where companies continued hiring Work Permit holders to support infrastructure and building projects.
Retail trade and administrative support services also saw hiring increases during the final quarter of 2025, partly linked to year-end events and holiday demand.
In 2023, residents accounted for less than 6% of total employment growth. While the resident share improved in 2025, foreign manpower still accounted for roughly four out of every five new jobs created over the year.
Businesses argue they still face manpower shortages
Employment numbers frequently become emotional territory in Singapore because they are closely tied to housing costs, career security, and long-term financial pressures.
Many Singaporeans accept that sectors like construction rely heavily on foreign workers, but the tension usually comes from white-collar jobs, where locals sometimes feel squeezed by competition or slower wage growth.
At the same time, businesses argue they still face manpower shortages, especially in physically demanding or less popular industries.
MOM acknowledged this balancing act in its report, noting that non-resident workers continue to fill roles that cannot be fully supported by the local labour pool alone.
The labour market remains fairly healthy overall, with unemployment staying low at 2% in December 2025, while job vacancies continue to outnumber unemployed people. Retrenchments also remained within normal non-recession levels.
MOM: “We expect the labour market to continue expanding in 2026…”
Looking ahead, MOM expects employment growth to continue this year, helped by a stronger economic outlook.
The Ministry of Trade and Industry (MTI) upgraded Singapore’s 2026 Gross Domestic Product (GDP) growth forecast to between 2% and 4% after stronger-than-expected global growth in late 2025.
Resident employment growth, however, is expected to stay similar or slightly slower than last year, while non-resident hiring is likely to remain strong in manpower-heavy sectors.
“We expect the labour market to continue expanding in 2026, given the more positive economic outlook, but the global economic environment remains uncertain and dynamic,” MOM stated, adding, “Whilst sentiment polls on hiring and wage expectations indicate improved business sentiments, employers may continue to take a more cautious approach to recruitment amidst uncertainties.”
As Singapore’s labour model has always depended on a mix of local and foreign workers, the challenge now is ensuring locals still feel they are moving forward alongside the economy, rather than watching it move ahead without them.
Read related: Tan See Leng: Job hiring slows, but Singapore firms are still not favouring foreigners over locals
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