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

Singapore saw a sharp rise in retrenchments during the second quarter of 2026, reaching 4,620 in total, according to the latest labour market data released on September 21. This retrenchment rate of 2.0 per 1,000 employees marked the highest figure since the fourth quarter of 2020 and raised the retrenchment incidence to 2.0 per 1,000 employees, up from 1.6 in the previous quarter.

The increase in retrenchments was primarily driven by business reorganisation and restructuring in sectors such as manufacturing, information and communications, and financial services. Despite the rising retrenchments, the labour market in Singapore remained resilient, with continued employment growth and low unemployment. However, some indicators suggested signs of softening, with resident employment growth moderating, the six-month re-entry rate decreasing, and the number of job vacancies falling.

Acting Manpower Minister Jasmin Lau acknowledged these signs of change, stating that fewer job vacancies were added in the quarter, and some workers found the transition into their next role slightly longer. The minister highlighted career conversion programmes aimed at mid-career workers, which provide on-the-job training and real experience to help them build relevant skills.

MOM also pointed out that unemployment indicators among older resident workers aged 50 and above should be closely monitored, as their unemployment rates have risen, and long-term unemployment has increased. The government remains committed to supporting workers and creating pathways for them to build new skills and secure job opportunities in the evolving economic landscape.