Laid-off locals take longer to find work in Q2 2026; job vacancies shrink 6.4%: MOM
Retrenchments stand at 4,620 for the three months, higher than earlier estimates
The Ministry of Manpower (MOM) announced on September 21 that retrenchments in Q2 2026 saw a higher number of employees laid off than initially estimated, at 4,620, up from an earlier estimate of 4,500. This increase marked a 20.6% rise compared to the previous quarter when 3,830 workers were let go. Simultaneously, job vacancies decreased by 6.4% to 68,600 in June, primarily due to fewer positions available in sectors like financial services and information and communications.
Acting Minister for Manpower Jasmin Lau acknowledged that while job opportunities still exist, transitioning between jobs can be challenging. The government aims to assist workers in acquiring new skills and preparing for alternative roles. Retrenchments reached their highest level since late 2020, primarily driven by reorganization and restructuring in sectors such as manufacturing, information and communications, and financial services.
Despite this, 54.9% of retrenched residents found new jobs within six months, a decrease from the 60.7% recorded at the end of March 2026. This delay in finding new employment may necessitate a larger financial safety net for these individuals, as suggested by DBS senior economist Chua Han Teng. Resident employment grew by only 2,200, compared to 5,400 in the previous quarter, and the average monthly recruitment rate fell to 1.4%, down from 1.6% the prior period.
Unemployment remained steady at 1.9% in June, with citizen unemployment at 3% and resident unemployment at 2.9%. However, the resident long-term unemployment rate increased to 1% by the end of June. MOM noted that employer hiring plans dipped to 48.7% in July, down from 43.9% in June, while wage increases were projected at 27.9%, down from 29.3% the previous month, indicating cautious financial planning by firms.
Despite low unemployment, MOM cautioned that conditions were becoming less favorable for some resident workers, highlighting a mixed labor market outlook.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
