More layoffs, less jobs: S’pore retrenchments hit highest level since 2020 as vacancies fall

Singapore recorded its highest level of layoffs since the COVID-19 pandemic as job vacancies continued to decline in the second quarter of 2026, according to the Ministry of Manpower (MOM). Approximately 1 in 1,000 employees were retrenched, with 4,620 workers laid off, a significant increase from the previous quarter's 3,830 retrenchments.

The fall in job vacancies, from 73,300 in March to 68,600 in June, mainly affected professional, managerial, executive, and technician roles in sectors like financial services and information and communications. Retrenched individuals faced a longer job search period, with only 54.9% securing new employment within six months, down from 60.7% in the first quarter.

However, nearly 70% found work within a year. Acting Minister for Manpower Jasmin Lau highlighted that while job opportunities remain, transitioning between roles can be challenging. The government is offering career conversion programmes to help workers gain new skills relevant to current job markets. Despite the overall growth in Singapore's labour market, with total employment increasing by 11,400 in the second quarter, resident employment growth slowed, and retrenchments rose.

Overall, the labour market remains resilient, but conditions are becoming less favourable for some resident workers. MOM predicts a "positive but cautious" outlook for the labour market, with hiring expectations improving across sectors, though wage expectations remain below pre-pandemic levels.