Retrenchments rose slightly in 2025, but employment growth expanded: Advance estimates

The labor market demonstrated continued stability at the close of 2025, according to recent data. The overall unemployment rate held steady at 2.0 percent in December, mirroring the rate recorded in September of the same year.

Unemployment Figures Remain Low

A breakdown of the figures reveals that unemployment among residents was 2.9 percent in December, a slight increase from 2.8 percent in September. Citizen unemployment also saw a minor uptick, moving from 3.1 percent to 3.0 percent over the same period. Throughout the entirety of 2025, the overall unemployment rate averaged 2.0 percent, a level consistent with the previous two years.

Did You Know? The overall unemployment rate has remained at 2.0 percent for at least six consecutive months, spanning September and December 2025.

Business Expectations and Wage Growth

Cautious Optimism for 2026

Looking ahead to the first quarter of 2026, business expectations indicate continued, though cautiously approached, expansion. While a slight decrease was observed in the percentage of firms planning to hire – from 44.1 percent in September 2025 to 43.3 percent in December 2025 – a significant rise is anticipated in wage increases.

The proportion of companies expecting to raise wages increased substantially, moving from 19.3 percent in September to 26.4 percent in December. This suggests improving business conditions and ongoing competition for skilled labor in specific sectors.

Workforce Adjustments, Not Mass Layoffs

Despite an increase in the number of firms anticipating workforce reductions – rising from 2.3 percent to 4.3 percent between September and December – the overall level remains low. This suggests that any adjustments to staffing levels are likely to be selective and targeted, rather than indicative of widespread job cuts.

Expert Insight: The combination of stable unemployment figures and increasing wage expectations suggests a tight labor market where employers are willing to invest in retaining and attracting talent, even amidst some degree of economic uncertainty.

The Ministry emphasized the importance of ongoing adaptation and skills development for both employers and workers to capitalize on emerging opportunities.

Future Data Release

A more comprehensive report covering the fourth quarter of 2025 is scheduled for release in mid-March 2026.

Frequently Asked Questions

What was the overall unemployment rate in December 2025?

The overall unemployment rate in December 2025 was 2.0 percent, unchanged from September 2025.

Did more firms expect to hire or retrench workers in December 2025?

More firms expected to hire, but the percentage expecting to hire edged down slightly from 44.1 percent in September to 43.3 percent in December. The percentage expecting to retrench workers increased from 2.3 percent to 4.3 percent.

What is the outlook for wage increases in the next quarter?

A larger share of firms expects to raise wages in the next three months, rising from 19.3 percent to 26.4 percent.

How might evolving business expectations impact long-term workforce strategies in a stable, yet competitive, labor market?