The employment market remained stable in the first quarter of this year, with rising layoff pressures in some industries | Lianhe Zaobao

This year, there have been reports of multiple companies in the local area laying off employees or closing factories, but industry insiders point out that the overall layoff situation in Singapore remains stable in the first quarter of this year. However, due to the impact of geopolitical tensions and rising costs, the layoff pressure in industries such as financial services, dining, and transportation logistics may be more pronounced. Recruitment agencies interviewed indicated that the number of layoffs locally remains low and is widely distributed across industries. In terms of hiring, companies are adopting a cautious overall attitude in the face of multiple uncertainties. According to data released by the Ministry of Manpower on Friday (April 10), as of February, the unemployment rate has remained stable, with an overall unemployment rate of 2%, a resident unemployment rate of 2.8%, and a citizen rate of 2.9%. The number of unemployed in February was 68,300, of which 59,600 were Singapore citizens. This situation is roughly similar to January of this year and December of last year, during which the overall unemployment rate was also 2%, the resident unemployment rate was 2.9%, and the citizen rate was 3%. The Ministry of Manpower noted in a statement that although the unemployment rate remains stable at present, the ongoing Middle East conflict continues to pose potential downside risks, which may impact the labor market through spillover effects and exert upward pressure on the unemployment rate in the coming quarters. Li Jing, Senior Vice President and General Manager of Adecco Singapore, stated in an interview with Lianhe Zaobao that according to the latest indicators, the layoff situation in the first quarter is expected to remain stable, far below the peak levels after the COVID-19 pandemic. Although official data for the first quarter has not yet been released, employer sentiment surveys indicate that the local employment environment is becoming cautious but remains within a controllable range. According to the Ministry of Manpower's Labor Market Report for the fourth quarter of 2025, the percentage of companies intending to lay off employees has risen from 2.3% in September last year to 4.3%. Li Jing said, "This change reflects multiple factors, including the instability of geopolitical situations, which makes companies more conservative in manpower planning, and the accelerated use of artificial intelligence, which is reshaping the structure of job positions With the emergence of new positions, some are also undergoing restructuring or integration.” Extended Reading Chen Ziyun: The wave of layoffs sounds the alarm, and our country must enhance its sense of crisis and action 【Red Ant】Production lines are "crossing the dam," and companies only keep the "mainframe" becoming a trend in Singapore? According to her observations, the number of layoffs among professionals, managers, executives, and technicians (PMET), as well as management positions, has slightly increased. This may be related to targeted restructuring in certain industries, as well as companies continuously pushing for streamlined operations or optimizing cost structures. Experts: Companies are not simply reducing headcount but redefining the value of job positions Since the beginning of this year, companies that have reported layoffs include the parent company of Tiger Beer, Asia Pacific Breweries, local time-honored beverage brand Yeo Hiap Seng, logistics giant DHL, German pharmaceutical company BioNTech, and American pharmaceutical giant MSD. Robert Walters Singapore's chief consultant Yang Lixia also believes that companies' recruitment strategies have shifted to a more cautious approach, with the transportation and logistics industry being the most affected, primarily due to fluctuations in global trade and demand cycles In the financial services sector, the development of digitization and automation is reducing backend positions and prompting companies to reallocate resources. Manufacturing-related enterprises are considering options such as relocating production facilities. The technology industry is also undergoing adjustments, with companies restructuring their workforce to match the changing skill demands. Eric Wu, Executive Director of the Singapore Human Resources Institute, pointed out that in the past, layoffs were usually associated with economic recessions, but in recent years, more layoffs are linked to business model transformations, a trend that is expected to continue in the long term. "Companies are not merely cutting staff; they are redefining the value of job positions, which makes job redesign, skill enhancement, and retraining more critical. The government's commitment to promoting skill development is on the right track, but the pace of advancement must keep up with the changing rhythm." Looking ahead to this year's employment prospects, Yang Lixia stated that companies will maintain stability but adopt more cautious recruitment strategies, conducting stricter evaluations for new positions to avoid resource misallocation