Singapore jobs and AI pressures set the tone before Budget day
Prime Minister and Finance Minister Lawrence Wong said many Singaporeans remain anxious about jobs despite a strong 2025 and a tight labour market. He cited rapid technological change and global uncertainty. In a video released on Feb 11, he promised more help to manage job transitions, build skills and secure access to good jobs with rising incomes. He will lay out details in the Budget statement on Feb 12.
Strong growth, but worries persist
Singapore’s economy expanded by 5.0% in 2025, according to the Ministry of Trade and Industry. The 2026 growth forecast was also upgraded to 2% to 4% on the back of a global AI investment boom. These headline numbers are solid. However, workers still see churn and changing skills needs, which fuels concern.
What PM Wong plans to do
Mr Wong said the Government will double down on three fronts: support smoother job moves, equip workers to stay competitive and keep pathways to good jobs with rising pay. In the video, he spoke with mid-career Singaporeans who switched roles, stressing continuous learning and employer-backed training. A “mid-career transition” means moving into a new occupation after several years in the workforce, often with re-training.
The numbers behind the outlook
Official data shows a strong finish to 2025, with momentum carrying into 2026. MTI’s revised forecast reflects firmer external demand and AI-related activity. Analysts note that manufacturing and trade-related services stand to benefit most, while risks from geopolitics still loom.
Investments today, jobs over five years
New investment commitments secured in 2025 are expected to generate about 15,700 jobs when realised over the next five years, the Economic Development Board said. Such pipelines take time to convert into hires. Policymakers therefore focus on helping workers bridge into roles as projects ramp up.
Unions press for safeguards as AI spreads
The National Trades Union Congress reports more firms seeking help to manage AI-driven disruption. It has proposed stronger transition support for professionals, managers and executives, including earlier retrenchment notices to give workers more time to prepare. A “retrenchment notice” is an employer’s formal advance warning of layoffs.
Why this matters for households
Wages and security hinge on how quickly people can reskill and move into high-value roles. Growth is firm, yet technology is reshaping tasks across sectors. The Budget on Feb 12 will signal how Singapore intends to cushion the adjustment while keeping its competitive edge
