SINGAPORE — Singapore’s labour market is showing fresh signs of pressure after unemployment among residents and citizens edged higher in the third quarter of 2026, while retrenchments climbed to their highest level since late 2020.
Advance figures released by the Ministry of Manpower (MOM) on Friday, October 30, showed that the resident unemployment rate increased to 3.0 per cent in September, up from 2.9 per cent in August. The unemployment rate among Singapore citizens also rose, reaching 3.1 per cent, compared with 3.0 per cent a month earlier.
The overall unemployment rate, however, remained unchanged at 2.0 per cent.
The figures came alongside an increase in retrenchments, from 4,620 in the second quarter to 4,800 in the third quarter. This was the highest quarterly total since the fourth quarter of 2020, when Singapore was still dealing with the economic disruption caused by the COVID-19 pandemic. AsiaOne+1
The latest figures present a mixed picture: Singapore is still adding jobs, but some resident workers are facing greater difficulty as companies reorganise and certain outward-oriented industries remain under pressure.
Retrenchments climb to 4,800 as companies restructure
MOM said retrenchments remained elevated in selected outward-oriented sectors, with business reorganisation continuing to be the main reason workers were laid off.
The number of retrenchments increased by 180 from the previous quarter, representing a rise of approximately 3.9 per cent.
Despite the higher total, the incidence of retrenchment remained at two workers per 1,000 employees.
This distinction matters. The number of workers affected increased, but the rate relative to the overall workforce did not rise during the quarter.
The latest figures also follow an already difficult second quarter, when 4,620 workers were retrenched. The increase suggests that restructuring pressures have not disappeared, even as the wider economy continues to generate employment.
WWC ONE MEDIA previously examined the earlier rise in job losses in Singapore Retrenchments Jump to Highest Level Since 2020 as Firms Restructure. AsiaOne+2
Employment grows by 27,700 despite higher unemployment
One of the most striking details in the latest report is that Singapore’s total employment still expanded significantly.
Employment increased by 27,700 in the third quarter, more than double the 11,400 recorded in the second quarter.
The latest increase was also higher than the 25,100 recorded in the same quarter last year.
Both resident and non-resident employment grew faster than in the previous quarter.
However, the sources of that growth were different. MOM said resident employment gains were primarily supported by essential and public services, while non-resident employment growth accounted for the majority of the overall increase, particularly in construction and manufacturing.
This helps explain why stronger headline employment growth does not necessarily mean every group of workers is experiencing better job prospects.
A labour market can create many new positions while workers in other industries are losing jobs, especially when employers are restructuring and the skills required for available vacancies are changing. AsiaOne+1
More companies say they plan to hire — but will residents benefit?
There is one encouraging signal in the latest figures.
The proportion of firms expecting to hire over the next three months increased from 30.5 per cent in August to 42.3 per cent in September, suggesting that more employers anticipate adding staff.
However, hiring intentions do not guarantee that every planned position will materialise or that available jobs will match the qualifications of retrenched workers.
Businesses may be expanding in construction, manufacturing and essential services while remaining cautious about recruitment in professional and outward-oriented sectors.
This selective approach has already been visible in Singapore’s employment market. WWC ONE MEDIA previously reported that Singapore Firms Stay Cautious on Hiring Even as Revenues Improve, highlighting how stronger business performance does not necessarily translate into widespread recruitment. AsiaOne+1
Older professionals face a difficult return to employment
The latest retrenchment figures also renew concerns about workers who may struggle to secure another position after losing long-held jobs.
Earlier MOM data showed that only 41.9 per cent of retrenched residents aged 50 to 59 had returned to employment within six months in the second quarter of 2026.
That figure was down from 51.8 per cent in the previous quarter.
WWC ONE MEDIA explored this issue in Singapore Workers in Their 50s Struggle to Find Jobs After Retrenchment.
The figures highlight an important difference between job creation and successful re-employment: new vacancies do not automatically provide suitable opportunities for people whose previous positions have disappeared. WWC One Media+1
AI and restructuring add uncertainty to the employment outlook
Technology is another concern for workers as companies review their operations and staffing requirements.
Singapore’s government has previously cautioned against attributing every retrenchment to artificial intelligence. Business restructuring can involve several factors, including weaker demand, operational changes and efforts to improve productivity.
Nevertheless, employees are increasingly interested in knowing how AI adoption could affect their positions.
WWC ONE MEDIA previously reported that 89% of Singapore Professionals Are Already Using AI at Work — But Only 67% Think It Will Help Their Careers.
The figures reflect the growing gap between workplace adoption of new technology and employees’ confidence about its impact on their future careers. WWC One Media+1
What Singapore’s latest unemployment figures really mean
The third-quarter figures do not indicate that Singapore is experiencing a broad employment collapse.
Overall unemployment remained at 2.0 per cent, employment expanded by 27,700, and more companies reported plans to hire.
But the increase in resident and citizen unemployment, combined with 4,800 retrenchments, shows that the benefits of employment growth are not being felt equally.
For workers, the challenge is increasingly about finding suitable jobs rather than simply whether the economy is creating positions.
For employers, the challenge is balancing restructuring and productivity improvements with the need to retain and recruit the right skills.
And for policymakers, the latest numbers reinforce the importance of helping displaced workers move into new roles before unemployment becomes prolonged.
Singapore is still creating jobs, but more workers are experiencing the consequences of corporate restructuring. The critical question now is whether the next wave of hiring will reach the residents who need those opportunities most.
