Singapore labour market expands in Q2 even as retrenchments rise and job vacancies fall

In the second quarter of 2026, Singapore's labour market experienced notable shifts, marked by a rise in retrenchments and a decline in job vacancies. The ministry of manpower reported that retrenchments reached a post-pandemic high, with 4,620 workers laid off, a significant increase from 3,830 retrenchments in the previous quarter.

This trend was primarily driven by restructuring in sectors such as manufacturing, information and communications, and financial services. Despite the rising retrenchments, the proportion of workers finding employment within six months dropped to 54.9%, down from 60.7% in the first quarter. However, it's worth noting that nearly 70% of retrenched workers secured new jobs within a year.

Acting Minister for Manpower Jasmin Lau acknowledged the challenge, stating that while jobs are available, transitioning from one role to another can be difficult. To support workers, the government has introduced career conversion programmes, enabling employees to gain real experience and build on their existing skills. The number of job vacancies also fell from 73,300 in March to 68,600 in June, primarily due to a drop in opportunities for professionals, managers, executives, and technicians (PMETs).

However, entry-level PMET vacancies remained stable, accounting for 45.3% of all job openings in June. Despite the overall decline, the market still had more vacancies than unemployed individuals, with a ratio of 1.48 vacancies per unemployed person. Total employment rose by 11,400 in the second quarter, marking the 19th consecutive quarter of growth.

However, growth in resident employment slowed compared to the previous quarter. Resident employment primarily increased in sectors like transportation, education, and health services. Non-resident employment growth was driven by work permit holders in the construction and manufacturing sectors. The long-term unemployment rate slightly increased to 1% in June, up from 0.9% in March, but overall, the labour market remained resilient, with low and stable unemployment rates.

MOM expects the labour market outlook to be "positive but cautious" in the near term, with near-term hiring expectations improving across various sectors, but wage expectations lagging behind.