Singapore's labor market continued to expand in the first quarter, with employment growth accelerating and unemployment remaining low despite heightened global economic uncertainty.
Total employment increased by 9,400 in the first quarter, marking the 18th consecutive quarter of growth since the end of 2021, according to a Labour Market Report released by the Ministry of Manpower on Monday.
The increase was driven by stronger resident employment growth, which rose to 5,400 in the quarter from 3,100 in the previous three months.
Resident employment gains were led by the administrative and support services as well as the transportation and storage sectors.
Singapore's overall unemployment rate stood at 2.0% in March, unchanged from the previous quarter. The unemployment rate for residents was 2.9%, while the rate for citizens was 3.1%.
Labor demand remained firm, with 73,300 job vacancies in March. The number of vacancies exceeded the number of unemployed persons by a ratio of 1.46.
"Looking ahead, labor market conditions are expected to remain resilient, although firms may adopt a more cautious approach in hiring and wage increases amid heightened global economic uncertainty and geopolitical tensions," the ministry said.
The ministry said labor demand could moderate if external conditions weaken further and elevated global input costs persist.
It added that the government will continue supporting employers and workers through skills upgrading, workforce transformation, and job placement initiatives.
The cautious outlook echoes recent comments from Prime Minister Lawrence Wong, who warned that the full economic impact of the conflict in the Middle East has yet to be felt.
"There are downside risks, and we do expect more pressures to come on both growth and inflation in the second half of the year," Wong said, according to Bloomberg News.
Reflecting the growing uncertainty, economists surveyed by Bloomberg now expect Singapore's economy to expand 3.3% in 2026, down from an earlier forecast of 3.5%. The economy grew 5% in 2025.
The city-state's outlook has become increasingly uncertain as the conflict in the Middle East and higher energy costs threaten global growth.
In the longer term, the labor market could also face challenges despite continued investment inflows.
While Singapore attracted higher fixed-asset investment commitments last year, the projects are expected to create 15,700 jobs over the next five years, the lowest projected level since at least 2006, according to Economic Development Board data.
The commitments are also expected to generate about SG$18 billion in annual value-added once realized, the weakest level since 2021.
