SINGAPORE: Singapore’s labour market continued to grow in 2025, but the bulk of new jobs went to foreign workers rather than locals, according to the Ministry of Manpower’s (MOM) latest Labour Market Report released in March.
The report showed that total employment, excluding migrant domestic workers, expanded by 55,500 in 2025, up from 44,500 in 2024. However, non-residents accounted for 43,900 of those jobs, or about 79% of total employment growth, while residents — comprising Singapore citizens and permanent residents — took up 11,600 positions.
The figures mean that for every new job gained by a resident worker last year, around four went to non-residents.
The report also showed differences in where employment gains were concentrated.
Among residents, most of the growth came from higher-skilled industries such as financial services and health and social services. Non-resident employment growth was driven mainly by labour-intensive sectors, particularly construction, which continued to depend heavily on foreign manpower for infrastructure and building projects.
In the fourth quarter of 2025, employment for both residents and non-residents increased in administrative and support services as well as retail trade, with MOM attributing the rise largely to seasonal hiring linked to events and year-end holiday demand.
The latest figures continue a trend seen over the past several years, with non-resident employment growth consistently outpacing that of residents.
In 2023, residents accounted for less than 6% of all new jobs created despite strong overall employment growth. Even in 2025, which recorded a stronger increase in resident employment compared to previous years, foreign workers still made up close to four in five of all new jobs added.
MOM said the pattern reflects structural constraints in Singapore’s labour market.
According to the ministry, Singapore’s resident labour force participation rate for those aged between 25 and 64 has reached 85.9%, among the highest globally. With most residents who are willing and able to work already employed or actively participating in the workforce, there is limited room for further expansion of the local labour pool.
At the same time, employers continue to face manpower demands that cannot be fully met by residents alone, whether due to business expansion, replacement needs, or challenges in attracting locals to certain sectors. Foreign workers have therefore continued to fill gaps in industries facing persistent labour shortages.
Looking ahead, MOM expects the trend to continue into 2026.
Resident employment growth is projected to remain at a similar pace or slow slightly compared to 2025, while non-resident employment is expected to keep expanding alongside economic demand, particularly in construction and other manpower-intensive sectors where hiring demand has remained strong in recent years.
