Retrenchments surge to highest level in Singapore since pandemic

Singapore experienced its highest level of retrenchments since the peak of the Covid-19 pandemic in the second quarter of 2026, according to the latest labour market report released by the Manpower Ministry. Between April and June, 4,620 workers were laid off, a significant increase from 3,830 retrenchments in the first quarter.

This marks the most quarterly job cuts since late 2020 when the pandemic led to widespread layoffs. The ministry attributes the surge primarily to business reorganisation and restructuring efforts, rather than cost-cutting measures or company closures. While the report does not provide a sector-by-sector breakdown, it notes that firms are adjusting workforce needs as they adopt digitalisation, automation, and streamline operations — trends that have continued since the pandemic.

Despite the increase in retrenchments, the overall labour market remains stable, with low unemployment rates and a surplus of job vacancies over job seekers. Economists interpret these figures as a transitional phase, reflecting how companies are recalibrating roles and skill requirements, especially in sectors undergoing technological changes.