MOM: Singapore’s labour force participation dips amid Singapore’s ageing population

Singapore’s labour force participation rate (LFPR) for residents above the age of 15 has fallen for the fourth year in a row, according to the Labour Force in Singapore Advance Release 2025 on 28 November 2025.

The Ministry of Manpower (MOM) attributed the decline to the nation’s ageing population. The labour-participation rate fell from 70.5 per cent in 2021 to 68.2 per cent in 2024, and further to 67.9 per cent in 2025.

Speaking to members of the Chinese press, NTUC Assistant Secretary-General Patrick Tay said: “It is very important for us to encourage more senior workers and Singaporeans to continue working and staying active in the workforce. I understand that a working group has just been established to discuss this significant challenge [the ageing workforce], so more will be shared later.”

Mr Tay added that it is important that companies remain flexible and innovative in hiring senior workers, and that support programmes are available to employers.

Despite this dip, MOM said that participation levels across most age groups remained stable or higher compared to last year, and Singapore still ranks among the top Organisation for Economic Co-operation and Development (OECD) countries for labour force participation.

It added that the labour market “has performed well” despite challenging global conditions.

As the LFPR continues to be affected by ageing, the ministry encourages both employers and workers to make full use of available programmes to stay competitive, upgrade skills, and remain adaptable.

Increase in retirees

The advance release states that there were 1.16 million residents outside the labour force in 2025, up from 1.14 million in 2024.

More retirements mainly drove the dip in LFPR among residents aged 15 and above. The share of people outside the labour force who cited retirement as their reason rose from 28.7 per cent in 2024 to 30.1 per cent in 2025.

Among seniors above 60, the proportion outside the labour force also rose from 54.9 per cent to 56.3 per cent, reflecting Singapore’s ageing population.

As more baby boomers reach retirement age, this trend is expected to continue.

Growth industries, unemployment and underemployment

Meanwhile, the advance release noted that more employees were in stable roles.

The share of workers in permanent jobs rose to 90.8 per cent, the highest on record, with increases across industries such as professional services, healthcare, and information and communications.

Unemployment remained low and stable across all occupational groups.

The unemployment rate for PMETs stayed at 2.8 per cent, while the rate for non-PMETs dropped from 3.4 per cent to 2.8 per cent. Long-term unemployment also improved slightly for both groups.

Labour underutilisation also remained low. Time-related under-employment fell to 1.9 per cent in 2025, down from 2.3 per cent the previous two years.

The number of people who have stopped looking for employment remained minimal at 7,400 people, or 0.3 per cent of the labour force.

Female participation remains strong

Women aged 25 to 64 continued to make strong progress in the workforce. Their LFPR rose from 74.1 per cent in 2015 to 80.5 per cent in 2025.

Meanwhile, men in the same age group continued to maintain a high participation rate of 91.8 per cent. These trends reflect ongoing national efforts to support inclusive employment opportunities for all.

Incomes continue to grow, especially for lower-wage workers

Workers saw improvements in their earnings. Median and 20^th-percentile (P50 and P20) gross monthly incomes increased to $5,775 and $3,164, respectively, in 2025, up from the previous year.

After adjusting for inflation, real incomes rose by 4.3 per cent for the median worker and 3.8 per cent for lower-wage workers.

The Government’s Progressive Wage Model (PWM) continued to improve the livelihoods of lower-wage workers. The income ratio between P20 and P50 rose to 0.55, narrowing the gap compared to 2020 and 2015.

Fewer job switchers

The share of employed residents who changed jobs fell from 7.6 per cent in 2024 to 6.2 per cent in 2025, especially among young workers aged 25 to 29.

The decline was partly due to fewer people actively looking for new jobs.

With that said, six in ten job switchers enjoyed real income gains of at least 5 per cent, showing continued opportunities for upward mobility.

Job quality remained strong despite global uncertainties.

Government to continue supporting workforce resilience

Despite a generally strong labour market, the MOM cautioned that global uncertainties may continue to affect hiring, particularly in outward-looking sectors.

It stressed the importance of building workforce resilience through upskilling, job redesign, career facilitation, and more flexible workplace practices.

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