Layoffs in S’pore up in third quarter as job vacancies continue to drop
Layoffs in S’pore up in third quarter as job vacancies continue to drop
Singapore’s labour market is showing clearer signs of cooling as layoffs rise and job vacancies decline for yet another quarter. While overall unemployment remains relatively low by global standards, the shift in momentum is becoming more visible across sectors such as technology, finance, and some consumer-related industries.
- Layoffs have increased compared with earlier quarters, signalling weaker hiring appetite.
- Job vacancies are shrinking as firms become more cautious with headcount and expansion.
- Hiring remains selective – employers are prioritising productivity, skills and automation.
- Impact is uneven: some sectors are trimming, while others continue to hire in a targeted way.
Why are layoffs rising and vacancies falling?
A combination of factors is contributing to this trend:
- Slower global growth weighing on exports, trade-related services and corporate profits.
- Higher-for-longer cost pressures pushing companies to streamline operations.
- Tech and financial services recalibration after earlier years of rapid hiring.
- Automation and digitalisation reducing the need for certain roles, even as new skillsets are in demand.
Many employers are still hiring, but more cautiously. Instead of aggressive headcount expansion, they are focusing on filling critical roles only and stretching existing teams.
Which sectors are feeling it more?
The increase in layoffs and reduction in vacancies is not uniform across the economy. Broadly:
- Technology & digital services – trimming after earlier over-hiring; more restructuring.
- Financial services & fintech – more selective, with some consolidation of functions.
- Trade-related & manufacturing-linked sectors – facing global demand uncertainty.
- Consumer-facing sectors – cautious on costs but still reliant on frontline manpower.
At the same time, there is still demand in areas like healthcare, logistics, sustainability, cyber security and AI-related roles, where skills shortages remain.
What this means for property owners & investors
A softer labour market has several knock-on effects for the property space:
1. Residential leasing & buying decisions
- Households may become more price-sensitive, favouring more affordable locations and unit sizes.
- Laid-off or job-insecure workers may delay upgrading plans or opt to rent rather than buy.
- Landlords of mass-market and city-fringe homes may still see stable demand, but tenants will watch budgets closely.
2. Commercial & office space
- Companies under headcount pressure may consolidate office space or renegotiate leases upon renewal.
- Flexible work and hybrid arrangements remain a theme, with some firms downsizing traditional offices.
- Well-located, efficient space with fair rentals still attracts occupiers looking to optimise cost per head.
3. Industrial & business parks
- Export-oriented firms may be cautious, but logistics, food production and advanced manufacturing remain active.
- Cost-conscious occupiers may favour ramp-up, high-ceiling or multi-user spaces that offer flexibility.
- Investors should watch tenant profile, lease expiry concentration and sector exposure more closely.
How businesses can respond
For business owners, this environment is both a challenge and an opportunity:
- Review space needs: ensure your current footprint matches headcount and business plans.
- Lock in value: if you have a good rental, consider securing favourable lease terms early.
- Strategic relocation: shifting to a more efficient unit can free up cashflow.
- Scenario planning: stress-test your business against weaker demand or delayed payments.
With the right strategy, companies can use this period to restructure, right-size and upgrade instead of reacting only when costs become unmanageable.
What should landlords be watching?
Landlords and property investors should pay attention to:
- Tenant health: industry, client mix and dependency on discretionary spending.
- Lease expiries: upcoming renewals in at-risk sectors may require more flexible negotiation.
- Yield vs vacancy trade-off: in a softer market, holding out for top-dollar rent may increase downtime.
- Asset repositioning: exploring alternative uses or sectors that are still growing.
- Does a rise in layoffs always mean property prices will fall?
- Not necessarily. Singapore’s housing and commercial markets are influenced by many factors including policy measures, supply pipeline, interest rates and household savings. Labour data is one important signal, but not the only one.
- Should I delay buying or selling property because of the weaker labour market?
- It depends on your objectives, time horizon and financing position. For some, this may be a chance to negotiate better value; for others, preserving liquidity and lowering leverage might take priority.
If you’re a landlord, business owner or investor wondering how rising layoffs and falling job vacancies could affect your next move, we can walk you through tailored scenarios — from lease strategy to buy/sell decisions for residential, commercial or industrial assets.
