Singapore sees sharp jump in Q2 retrenchments as job vacancies fall
Retrenchments in Singapore climbed to 4,620 in the second quarter of 2026, raising the incidence to 2.0 per 1,000 workers, the highest level since late 2020.
Singapore's labour market recorded 4,620 retrenchments in Q2 2026, lifting the quarterly incidence to 2.0 per 1,000 employees, the strongest rise since Q4 2020. The Ministry of Manpower attributed the surge to business reorganisation in outward-oriented sectors like manufacturing, information and communications, and financial services. While overall employment rose by 11,400, driven largely by non-resident work permit holders, the six-month re-entry rate fell to 54.9% and vacancies declined to 68,600, with notable drops in PMET openings in finance and ICT.
Acting Manpower Minister Jasmin Lau warned that workers are taking longer to secure new roles and emphasized government-backed career conversion programmes. Data also showed higher unemployment among residents aged 50 and above, prompting calls for targeted upskilling. MOM's director Ang Boon Heng noted that short-work and temporary layoff figures fell, suggesting no immediate recessionary pressure.
Why it matters
Rising layoffs and fewer vacancies signal a softening Singapore labour market, affecting job security and economic confidence.
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