SINGAPORE – Retrenchments in Singapore rose to their highest quarterly level in more than five years during the second quarter of 2026, although overall employment continued to expand and unemployment remained low.
Advance labour market estimates released by the Ministry of Manpower (MOM) showed 4,500 workers were retrenched between April and June, up from 3,830 in the previous quarter. It was the highest quarterly retrenchment figure since the final quarter of 2020.
The incidence of retrenchment also increased to 1.9 per 1,000 employees from 1.6 in the first quarter, as reported by CNA.
According to MOM, the increase was mainly concentrated in outward-oriented industries undergoing business restructuring.
Despite the rise in layoffs, the ministry noted that retrenchment levels remained well below those recorded during major economic downturns, such as the Global Financial Crisis and the COVID-19 pandemic.
Singapore's labour market continued to grow during the quarter, with total employment increasing by 10,700, extending employment growth to a 19th consecutive quarter.
Resident employment continued to rise, driven mainly by hiring in essential and public services, while growth in non-resident employment was concentrated in the construction and manufacturing sectors.
The unemployment rate also remained stable. In June, overall unemployment stood at 2.0 per cent, while resident unemployment remained at 2.9 per cent. Citizen unemployment eased slightly to 3.0 per cent from 3.1 per cent in March.
Looking ahead, MOM said labour demand remained resilient despite global economic uncertainties.
The proportion of businesses expecting to hire increased to 43.9 per cent in June from 40.6 per cent in May, while the share planning wage increases rose to 29.3 per cent from 23.7 per cent.
At the same time, the proportion of employers expecting to retrench workers declined from 3.2 per cent to 2.7 per cent.
The ministry said the stronger hiring and wage outlook suggested employers remained confident even as some industries continued restructuring.
It encouraged businesses to make use of existing reskilling programmes, including career conversion initiatives and the Mid-Career Pathways Programme, while urging workers to upgrade their skills through Career Health SG, SkillsFuture training and career coaching services.
Fresh graduates facing difficulties entering the workforce were also encouraged to consider the Graduate Industry Traineeships (GRIT) programme, while eligible unemployed individuals can receive temporary financial support of up to S$6,000 over six months under the SkillsFuture Jobseeker Support scheme while seeking new employment.
