Singapore Job Growth Rises, Faces Global Risks in 2025

In the second quarter of 2025, Singapore’s labor market expanded by 8,400 jobs, a notable increase from the 2,300 jobs added in the previous quarter, driven by growth in sectors like financial services and construction. Yet, with global economic uncertainties, including U.S. tariffs and a projected GDP growth slowdown to 0–2%, cautious hiring sentiments are casting a shadow over future wage growth, with only 22.4% of firms planning wage increases in Q3 2025. Amid these challenges, Singaporeans face rising living costs, with public housing resale prices climbing 9.42% year-on-year in Q1 2025. This economic landscape underscores the critical need for robust financial literacy to navigate uncertainties effectively. By prioritizing budgeting, savings, and upskilling, individuals can safeguard their financial stability in an increasingly unpredictable environment.

Singapore’s economy in 2025 reflects a complex interplay of resilience and vulnerability. Total employment grew by 8,400 in Q2 2025, surpassing the 2,300 increase in Q1 and the 7,700 in Q4 2024, with gains in resident employment in sectors like financial services and health and social services, alongside non-resident growth in construction. However, resident employment in outward-oriented sectors, such as professional services and information and communications, continued to decline, signaling sensitivity to global economic headwinds. The unemployment rate remained stable at 2.9% for residents in June 2025, with citizen unemployment at 3%, within non-recessionary norms. Retrenchments held steady at 3,500, with a low incidence rate of 1.4 per 1,000 employees, primarily due to business restructuring rather than widespread economic downturns.

Financial literacy emerges as a cornerstone for Singaporeans navigating this uncertain economic landscape. With nominal wage growth at 5.5% in 2025, outpacing inflation at 2%, real wages are rising by approximately 3.5%, offering opportunities to bolster savings. However, only 22.4% of firms plan to raise wages in Q3 2025, a 2% drop from Q2, particularly in sectors like professional services and transportation. This signals potential constraints on income growth, necessitating a proactive approach to budgeting and saving. Financial literacy equips individuals to allocate income effectively, directing surplus funds into high-yield savings accounts or low-risk investments like Singapore Savings Bonds, which yield around 2.5% annually, to maximize returns in a low-inflation environment.

Housing remains a significant financial consideration, with public housing resale prices rising 9.42% year-on-year in Q1 2025, outpacing wage growth. This trend, driven by strong demand and a reduced supply of resale flats (from 30,920 in 2022 to 11,952 in 2024), challenges affordability for first-time buyers. However, government interventions, such as the Enhanced CPF Housing Grant (up to S$80,000 for lower-income households) and the Family Grant (up to S$120,000 for eligible buyers), alleviate financial pressures. CPF contributions, at 37% for those aged 55 and below, allow significant portions of housing costs to be covered without depleting cash reserves, with HDB loans requiring monthly repayments as low as S$1,200 for a S$500,000 flat when using CPF.

Upskilling is a critical financial strategy in the face of softening employment in outward-oriented sectors. The decline in resident employment in professional services and information and communications, coupled with cautious hiring sentiments (43.7% of firms planning to hire in Q3 2025), underscores the need for workforce adaptability. Government initiatives like SkillsFuture, which subsidizes training costs for courses in high-demand fields like technology and healthcare, enable workers to transition to growing sectors. For example, the Career Conversion Programme supports mid-career switches, with over 30,000 participants since 2020, enhancing employability and income potential.

Some may argue that Singapore’s robust government support schemes, such as the SkillsFuture Jobseeker Support and housing grants, reduce the need for individual financial literacy efforts. With up to S$6,000 in unemployment assistance and substantial housing subsidies, individuals might rely on these measures to navigate economic challenges without developing personal financial skills. The Singapore Economic Resilience Taskforce’s commitment to expand career guidance and HR certifications further suggests that systemic support can sufficiently address economic uncertainties, potentially diminishing the urgency for self-directed financial planning.

Retirement planning is increasingly vital as economic uncertainties and a rising retirement age (set to reach 64 in 2026) reshape financial priorities. The CPF system, with contributions of 37% for those aged 55 and below, supports retirement savings, with the Full Retirement Sum set at S$426,000 for those born in 1958 or later. From 2025, the closure of the Special Account will direct all contributions to the Retirement Account, enhancing long-term savings. However, with median monthly expenditure for retiree households at S$1,492 for singles and S$2,551 for couples, ensuring adequate savings is critical, especially given life expectancies of 83 for men and 87 for women.

​Singapore’s economic landscape in 2025, characterized by employment growth tempered by global uncertainties, underscores the pivotal role of financial literacy in securing personal financial well-being. With housing costs rising faster than wages and hiring sentiments cooling, individuals must proactively manage budgets, leverage government support, and invest in skills to remain resilient. The projected GDP slowdown and cautious wage expectations signal potential challenges ahead, particularly for outward-oriented sectors. As retirement ages increase and living costs persist, financial literacy will be crucial for navigating these complexities, ensuring Singaporeans can balance immediate needs with long-term goals. The future demands adaptability, with informed financial decisions serving as the foundation for stability in an evolving economic environment.