More under-30s in Singapore unemployed even as total employment grew in Q2 2025

Key Concepts

• Total employment growth
• Youth unemployment rate increase
• Retrenched workers' re-employment duration
• Greater Industry Traineeships Programme
• Upskilling and reskilling initiatives
• AI integration in the workforce
• Evolving global economy and technology
• Emerging trends (geopolitics, regionalization, diversification)

Singapore's Labor Market Q2 2024 Overview

Singapore's labor market showed overall stability in the second quarter of the year, with total employment growing by 10,400, which is more than four times the growth in the previous quarter. However, there are emerging challenges, particularly for younger workers and retrenched employees.

Youth Unemployment

• The unemployment rate for residents under 30 years old increased from 5.4% to 5.7%.
• This translates to 2,400 more young individuals seeking employment.
• A potential reason cited is a shift away from immediate pursuit of further education due to global economic uncertainties, leading some to seek employment first.

Retrenched Workers

• Retrenched workers are experiencing longer durations to secure new employment. This indicates a potential mismatch between available skills and job requirements or increased competition for available positions.

Greater Industry Traineeships Programme

• The Greater Industry Traineeships Programme is a government initiative launching next month.
• It aims to provide up to 800 traineeship positions across both private and public sectors.
• The program's objective is to offer young individuals industry exposure, networking opportunities, and immersion with industry experts.
• The program is designed to address the rapid evolution of the global economy and technology, particularly in the AI sector, rather than shortcomings in Singapore's tertiary education system.
• The program aims to provide "intended and end-to-end exposure" to build networks and socialize within industries.

Market Outlook and Emerging Trends

• One market watcher anticipates potential headwinds in the labor market during the second half of the year.
• However, there is optimism for improved conditions in 2026, contingent on global pressures easing.
• Key emerging trends to focus on include:
  • Proliferation of AI
  • Geopolitics of the region
  • Regionalization in Asia
  • Diversification of industries
• These trends are expected to drive company entries and exits, with some companies potentially facing decline in "sunset industries."
• Agility and continuous upskilling are crucial for staying competitive in the evolving job market.

Upskilling and Reskilling Initiatives

• Companies are actively investing in upskilling their workforce to adapt to new trends.
• Capital Land and Workforce Singapore have partnered, investing $7 million into reskilling and digital innovation.
• The focus is on preparing the workforce to be adaptable and proficient in using AI.
• Companies are redesigning jobs to reduce time spent on repetitive tasks and increase focus on high-value work.

AI Integration and Workforce Transformation

• The goal is to build a strong pipeline of AI talent and enable workers to take on new roles in a rapidly changing economy.
• AI is transforming the way work is done, necessitating workforce readiness and adaptability.

Conclusion

While Singapore's labor market demonstrates overall stability, challenges persist for young job seekers and retrenched workers. Initiatives like the Greater Industry Traineeships Programme and investments in upskilling and reskilling are crucial for addressing these challenges and preparing the workforce for the evolving demands of the global economy, particularly in the context of AI and emerging trends. Staying agile and continuously upgrading skills are key to maintaining competitiveness in the fast-changing job market.