Singapore recorded 4,620 retrenchments in the second quarter of 2026, a sharp increase from 3,830 in the previous quarter and the highest quarterly figure since the COVID-19 period in late 2020.
The latest figures from the Ministry of Manpower show that the retrenchment rate rose to 2.0 workers per 1,000 employees, up from 1.6 per 1,000 in the first quarter. The increase was concentrated in outward-oriented sectors including manufacturing, information and communications, and financial services, with business reorganisation and restructuring cited as the main driver.
The impact was also more pronounced among resident professionals, managers, executives and technicians. Workers in their 50s recorded the highest retrenchment incidence among the age groups highlighted by MOM, followed by workers in their 40s.
Finding another job also took longer for some retrenched workers. The share of retrenched residents who returned to employment within six months fell from 60.7 per cent in the first quarter to 54.9 per cent in the second quarter. However, the 12-month re-entry rate remained broadly stable at 69.8 per cent, suggesting that many workers were eventually returning to employment but needed more time to make the transition.
At the same time, Singapore’s overall labour market continued to expand. Total employment increased by 11,400 in the second quarter, marking the 19th consecutive quarter of employment growth. However, resident employment growth slowed to 2,200 from 5,400 in the first quarter.
Unemployment remained relatively low, with the overall unemployment rate at 1.9 per cent in June. Resident unemployment stood at 2.9 per cent, while citizen unemployment was 3.0 per cent.
Job vacancies, however, declined from 73,300 in March to 68,600 in June, particularly for professional, managerial, executive and technician positions in financial services and information and communications. Even so, Singapore still had more vacancies than unemployed people, with 1.48 vacancies for every unemployed person in June.
The outlook is mixed. MOM’s July business expectations survey found that the proportion of companies planning to hire during the following three months increased from 43.9 per cent to 48.7 per cent. But fewer companies expected to raise wages, with the figure easing from 29.3 per cent to 27.9 per cent.
MOM said the labour market remained resilient overall, but conditions had become less favourable for some resident workers as retrenchments increased, resident employment growth moderated and short-term re-employment outcomes weakened.
The latest numbers therefore point to a labour market that is still expanding, but with clearer signs of pressure beneath the headline employment growth. The key question now is whether restructuring-related layoffs remain concentrated in selected industries or begin spreading more broadly across Singapore’s economy.
