Singapore's Q2 layoffs climb to highest since 2020

Singapore's second quarter of 2026 saw a sharp rise in layoffs, with 4,620 workers losing their jobs, marking the highest number since 2020, according to the manpower ministry's labor market report. This is a significant increase from the 3,830 layoffs recorded in the previous quarter. The ministry reported that the surge in retrenchments was primarily concentrated in sectors oriented towards exports, such as manufacturing, information and communications technology, and financial services.

The ministry noted that the proportion of retrenched workers who found employment again within six months had decreased to 54.9% in Q2 2026 from 60.7% in Q1, indicating a longer-term struggle for these individuals to regain employment. However, the 12-month re-entry rate remained steady at 69.8%, suggesting a gradual recovery despite the setbacks.

Despite the uptick in layoffs, Singapore's overall unemployment rate held steady at 1.9%, with the rates for residents and citizens remaining at 2.9% and 3%, respectively. The number of job vacancies also declined in Q2, with a notable reduction in opportunities for professionals, managers, executives, and technicians in the financial services and information and communications technology sectors.

Nonetheless, the ratio of job vacancies to unemployed individuals remained favorable at 1.48 to 1 as of June 2026, indicating that jobs were still more abundant than the number of jobless workers seeking them.