---
title: "Singapore unit labour costs to rise this year despite ‘flat’ 2025"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/276245647.md"
description: "Singapore's unit labour costs (ULC) are projected to rise in 2026 after remaining flat in 2025, as productivity growth slows and wages increase. The Ministry of Trade and Industry reports that while total labour cost per worker rose by 3.4%, it was offset by a 3.5% gain in productivity. ULC increased in services and construction sectors, while manufacturing saw a decline. The largest ULC rises were noted in administrative services, retail trade, and food & beverage services, driven by higher remuneration and lower productivity."
datetime: "2026-02-18T15:17:43.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/276245647.md)
  - [en](https://longbridge.com/en/news/276245647.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/276245647.md)
---

# Singapore unit labour costs to rise this year despite ‘flat’ 2025

**ULC is expected to climb as productivity growth slows and wages increase.**

Singapore’s overall unit labour cost (ULC) is expected to pick up in 2026 after a ‘flat’ 2025, according to a Ministry of Trade and Industry report.

The expansion is attributed to a projected moderation in productivity growth, even as remuneration per worker is expected to steadily rise.

“At the same time, the costs of utilities, fuel and transportation are likely to moderate, in line with the outlook for global oil prices in 2026,” the report said.

Overall 2025 ULC was flat, following a 1.3% increase in 2024. Total labour cost (TLC) per worker rose 3.4% due to higher remuneration, but was offset by a 3.5% gain in labour productivity.

By sector, ULC increased in services-producing industries (0.6%) and construction (2.9%), as TLC per worker rose faster than productivity gains.

In contrast, the manufacturing sector saw a 4.3% fall in ULC as labour productivity gains in the sector more than offset an increase in TLC per worker.

Within services, the largest ULC rises were in administrative & support services (5.3%), retail trade (4.0%), and food & beverage services (3.8%).

Retail trade’s increase was attributed to higher TLC per worker, whilst the other two sectors were affected by both rising labour costs and falling productivity.

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