By Amanda Lee
SINGAPORE--Singapore's labor market stayed tight last year, but rising uncertainty could curb hiring demand in 2026 if a weaker global economic environment pressures businesses.
A report from the Ministry of Manpower showed that employment trends were solid in 2025, with unemployment low and labor demand firm.
The ministry expects the labor market to keep growing in 2026, but warned that the global economic environment remains uncertain and dynamic.
While polls on hiring and wage expectations indicate improved sentiment among business, employers could take turn more cautious on hiring due to the headwinds facing the global economy, it said on Friday.
The recent conflict in the Middle East and renewed global trade tensions have marred the outlook for economies in Asia, many of which are reliant on energy imports and lean heavily on exports to buoy growth.
Surging oil and gas prices threaten to squeeze corporate profits, with volatility in the supply of other key inputs due to shipping disruptions also pressuring industries. That could make firms more reluctant to add staff, and ultimately feed through to inflation if they pass costs on to consumers.
The ministry said it is important for employers and workers alike to be proactive in facing the headwinds.
Friday's report indicated that the labor market entered 2026 in relatively good shape.
Total employment, excluding migrant domestic workers, grew by 55,500 last year, according to the revised data. That's slightly below the increase of 57,300 in preliminary data released in January, but beat the 44,500 increase for 2024.
Unemployment and retrenchments remained low.
Write to Amanda Lee at amanda.lee@wsj.com
(END) Dow Jones Newswires
March 19, 2026 23:56 ET (03:56 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
