Here’s a surprising fact: Singapore’s workers are thriving in 2025, even as the global economy faces uncertainty. Real median income soared by 4.3%, reaching a new high, thanks in part to a record number of workers securing permanent jobs—over 90% of the workforce, to be precise. But here’s where it gets even more interesting: this growth isn’t just for the top earners. Lower-wage workers saw their pay rise by 4.6%, signaling a narrowing income gap that’s worth celebrating. So, what’s driving this? Let’s break it down.
According to the Ministry of Manpower (MOM), Singapore’s labor market remains stable despite external challenges. Real incomes for resident workers—citizens and permanent residents—grew by 4.3% at the median level. For context, this outpaces the past decade’s annual averages of 2.1% for median earners and 2.9% for those at the 20th percentile. And this is the part most people miss: inflation played a key role. With core inflation easing to a forecasted 0.5% in 2025, down from 2.7% in 2024, nominal income growth translated into significant real income gains.
Speaking of nominal income, the median wage climbed 5% to S$5,775 in 2025, up from S$5,500 the previous year. Even more impressive, 20th-percentile earners saw their wages rise by 4.6% to S$3,164. But it’s not just about numbers—this growth reflects a broader trend. The proportion of workers in permanent jobs hit an all-time high, with sectors like professional services, healthcare, and information technology leading the charge. As MOM’s director of manpower research, Ang Boon Heng, pointed out, these are quality jobs that offer stability and peace of mind.
Now, let’s talk about the elephant in the room: Is this growth sustainable? While labor under-utilization remained low in 2025, with time-related under-employment dropping to 1.9%, there are signs of moderation. Resident unemployment rates stayed steady at 2.8%, and long-term unemployment declined, but the labor force participation rate dipped slightly for the fourth consecutive year, falling to 67.9%. This decline, though small, is worth watching, especially as Singapore’s population ages. Still, Singapore’s participation rate remains among the highest in OECD countries, outpacing nations like Iceland and Sweden.
Another noteworthy trend: employment rates among ‘prime-age’ residents (25-54) dipped slightly from 87.7% to 87.5%, largely due to hiring slowdowns in outward-oriented sectors like tech, manufacturing, and finance. Yet, over the past decade, employment rates across most age groups have risen, with seniors aged 65 and above seeing marked improvements. So, while there are challenges, the overall picture is one of resilience.
But here’s a thought-provoking question: As Singapore’s economy evolves, how can it ensure that this growth is inclusive and sustainable in the long term? With sectors like tech and finance facing hiring slowdowns, what new industries or policies might emerge to keep the momentum going? And how can we address the slight dip in labor force participation without compromising the quality of jobs? These are the questions that will shape Singapore’s future—and we’d love to hear your thoughts in the comments. What do you think is the next step for Singapore’s labor market? Let’s start the conversation!
