In Singapore, the labour market showed expansion throughout 2025, evidenced by an increase in the number of employed residents and job vacancies. The Ministry of Manpower (MOM) reported on March 20, 2026, an increase in the number of employed residents by 11,600, surpassing the 8,800 growth of the previous year. Job vacancies also increased significantly from 69,600 in September to 77,700 by December 2025. Most of these job vacancies catered to positions traditionally filled by residents, highlighting a growing demand for local talent in various sectors. Despite this positive employment growth, challenges arose in the final quarter of 2025, as the retrenchments surged to 14,490, a notable rise from 13,020 in 2024. Among those retrenched, the majority were residents, constituting 73.7% of all cases. Key sectors that experienced higher retrenchments included financial services and professional services, correlating with a higher demand for skilled professionals and job vacancies. This indicates that while some job roles were eliminated due to corporate restructuring, there were still opportunities available in other areas. This suggests an ongoing transition rather than an outright reduction in job demand. During this period, businesses faced multiple challenges, particularly in terms of costs related to energy and supply chains. To navigate these issues, employers became more selective in their hiring processes, focusing on candidates that demonstrated job readiness and practical experience, particularly in areas tied to digitalisation, data, and artificial intelligence. Such an emphasis has introduced an element of selectivity in job matching and may extend the job search duration for some younger individuals entering the workforce. Looking ahead to 2026, MOM anticipates a continued cautious approach from firms regarding hiring and wage decisions, particularly as some sectors with international dependencies could experience further retrenchments. Specifically, industries such as information and communications, manufacturing, and financial services could see job cuts, although they are not predicted to escalate to recession-related levels. Despite these expected challenges, MOM projects that resident employment growth will continue at a similar pace to that of 2025, reflecting Singapore's high labour force participation rate and the overall resiliency of its job market.