Retrenchments in Singapore inch up in Q3 2026 - The Straits Times

Business reorganisation continued to be the main driver of retrenchments, said the Manpower Ministry, with layoffs remaining elevated in selected outward-oriented sectors such as information and communications, financial services and manufacturing.

SINGAPORE – Retrenchments edged up in the third quarter of 2026, continuing an upward trend as firms restructure, according to preliminary labour market data from the Ministry of Manpower (MOM) on Oct 30.

There were 4,800 layoffs between July and September, up 3.9% from 4,620 in the previous quarter – the highest numbers since late 2020. The incidence of retrenchment held constant at 2.0 for every 1,000 employees.

The services sector accounted for more than 80% of the cuts, the data showed.

Retrenchments were elevated in outward-oriented sectors such as information and communications, financial services and manufacturing, and were mainly driven by business reorganisation, MOM said.

The labour market continued to expand, with employment growth largely driven by non-residents in sectors such as construction and manufacturing.

Total employment rose by 27,700, up from 11,400 in the previous quarter and 25,100 in the same period in 2025.

Employment for residents also grew more quickly and was mainly in essential and public services, MOM said.

The unemployment rates for residents and citizens rose slightly to 3% and 3.1%, respectively, in September, from 2.9% and 3% in August. The overall unemployment rate held unchanged at 2%.

Looking ahead, more companies in an MOM poll expected to hire and raise wages over the next three months, but a slightly larger share of firms also expected to retrench.

Some 42.3% of firms said in September that they expected to hire in the next three months, up from 30.5% in August, while 19.9% said they expected to raise wages, up from 16.9%.

But these figures were below July’s levels, suggesting that employers remained cautious amid economic uncertainty, MOM said.

Meanwhile, 3.1% of firms said in September that they expected to retrench, up from 2.8% in August.

“This increase, alongside higher actual retrenchments, points to emerging weaknesses in parts of the labour market that warrant close monitoring, even as the overall market continued to expand,” said MOM.

To Maybank economist Chua Hak Bin, the labour market is in a “low hire, low quit” mode, which is “likely to persist, given the broadening adoption of AI tools”.

The technology may be reducing manpower demand for professional services, for which the job market remains subdued, he said.

Recruitment platform Jobstreet by SEEK said job postings on its Singapore platform rose 8% from July to September from the previous quarter, with more openings in sectors such as infocomm technology, electronics, financial services and construction.

But “more advertised opportunities do not automatically mean an easier job search”, it added, advising workers navigating a career transition to look beyond job titles to identify where their experience and skills are relevant, and where targeted training could close gaps.

Amid a more uncertain global outlook and rapid technological change, MOM urged companies to adapt and invest in their workforce, and workers to keep their skills relevant.

The Ministry of Manpower said firms can tap schemes such as career conversion programmes and the Mid-Career Pathways Programme to reskill or upskill workers, and the SkillsFuture Workforce Development Grant for workforce transformation.

Singaporean workers can seek out career guidance and job-matching services by the Skills and Workforce Development Agency and NTUC’s Employment and Employability Institute. They can also upskill using the SkillsFuture Level-Up Programme and Workfare Skills Support scheme for mid-career and lower-wage workers, respectively.

Fresh graduates may apply for Graduate Industry Traineeships to enter the workforce, while those who are involuntarily unemployed can get temporary financial assistance using the SkillsFuture Jobseeker Support Scheme.

MOM will release fuller labour market data for the third quarter in mid-December 2026, which will have more details including how quickly retrenched workers are re-entering employment.