Advance estimates showed that labour market improvements have moderated in 1Q 2023. While unemployment rates stayed low, employment growth for resident and non-residents has slowed. Retrenchments also rose for the third consecutive quarter. Global economic headwinds have contributed towards a slowdown in Singapore’s economy, which will weigh on labour demand going forward, particularly for outward-oriented sectors. The rising retrenchments and slowing employment growth foreshadow a softer labour market in coming months. Employment growth is likely to ease and remain uneven across sectors, and unemployment rates could edge up from their current lows.