Singapore's Labour Market Remains Resilient, but Hiring May Slow in 2026 Amidst Global Uncertainty: MAS Review

Why It Matters

A slowdown in hiring signals tighter labour supply for skilled roles, while rising inflation could pressure corporate margins and monetary policy in a key Asian hub. Investors and employers must gauge sector‑specific talent gaps and cost pressures ahead of 2026.

Key Takeaways

• Q4 2025 added 17,700 jobs; unemployment stayed at 2.8%
• Construction workers accounted for half of employment growth
• Hiring to moderate in 2026 amid global energy uncertainty
• Core inflation projected at 1.5‑2.5% prompting NEER adjustment

Pulse Analysis

Singapore’s labour market has proved remarkably resilient, with total employment rising by 17,700 in the fourth quarter of 2025 and the unemployment rate holding at a low 2.8%. The surge was largely driven by non‑resident construction workers supporting a wave of public‑infrastructure projects, while resident hiring remained steady in domestic‑oriented services and modern‑services sectors. This balance of demand and supply has kept wage pressures modest, but the outlook is shifting as global geopolitical tensions tighten energy supplies and lift commodity prices.

Looking ahead to 2026, the Monetary Authority of Singapore (MAS) expects firms to adopt a more cautious hiring stance. Survey data from the Singapore Commercial Credit Bureau shows a dip in business optimism following Middle‑East conflicts, and hiring in modern services is already easing. Nevertheless, structural demand persists in healthcare, education, public administration, and technology‑focused roles, creating a nuanced talent landscape where skilled vacancies may outpace supply. At the same time, nominal wage growth for residents is set to moderate, with policy‑driven wage adjustments under the Progressive Wage Model providing limited support.

Inflation remains modest but is trending upward, with core inflation projected to average between 1.5% and 2.5% in 2026. Rising fuel costs and higher import prices are expected to filter through to consumer goods, utilities, and travel services. In response, MAS will slightly increase the appreciation rate of the S$NEER policy band, a measured move to pre‑empt inflationary pressures without tightening monetary policy abruptly. This calibrated stance aims to preserve Singapore’s price stability while allowing the economy to absorb external shocks, a balance that will be closely watched by investors and multinational firms operating in the region.