Singapore retrenchments rise sharply in Q2 amid falling vacancies and fewer laid-off workers finding jobs

Singapore recorded a sharp increase in retrenchments during the second quarter of 2026, with 4,620 workers losing their jobs, the highest figure since late 2020. This rise in retrenchments, now at 2.0 per 1,000 employees, is attributed to business reorganization and restructuring in sectors such as manufacturing, information and communications, and financial services.

Despite the increase, the labour market remains resilient, with continued employment growth and low unemployment rates. However, other indicators suggest signs of softening, particularly for resident workers. The rate at which resident workers re-enter the workforce six months after retrenchment slowed to 54.9 per cent, down from 60.7 per cent in the previous quarter.

Additionally, the overall entry-level vacancies for professional, managerial, executive, and technician roles fell to 31,700, making up 45.3 per cent of all vacancies in June, compared to 32,800 in March. Acting Manpower Minister Jasmin Lau highlighted the challenges faced by some workers in transitioning to new roles, emphasizing the government's commitment to supporting workers through career conversion programmes that provide on-the-job training and real experience.

While the government remains committed to creating pathways for Singaporeans to build new skills and move into job opportunities, concerns remain for older workers, particularly those in their 50s and 60s, who face higher retrenchment rates and longer-term unemployment.