Retrenchments in Singapore inch up in Q3 2026
Layoffs between July and September were up 3.9% from the previous quarter.
On October 30, the Ministry of Manpower (MOM) in Singapore released preliminary labour market data indicating a slight increase in retrenchments during the third quarter of 2026. Between July and September, there were 4,800 layoffs, marking a 3.9% rise from the previous quarter's 4,620, the highest figure since late 2020. The retrenchment rate remained steady at 2.0 per 1,000 employees.
Business restructuring was the primary cause of these layoffs, particularly in sectors such as information and communications, financial services, and manufacturing. Despite the rise in retrenchments, employment grew more rapidly than in the previous quarter for both residents and non-residents, with non-resident employment growth being the dominant factor.
Total employment increased by 27,700, surpassing 11,400 in the prior quarter and 25,100 in the same period a year earlier. Resident employment growth was mainly driven by essential and public services, while non-resident employment growth was primarily in construction and manufacturing, according to MOM. The overall unemployment rate remained constant at 2.0% in September, with resident and citizen unemployment rates slightly increasing to 3.0% and 3.1% respectively from 2.9% and 3.0% in August.
MOM's latest poll revealed that more companies anticipated hiring and raising wages over the next three months, but a slightly larger number of firms also expected to retrench. The proportion of companies expecting to hire increased from 30.5% in August to 42.3% in September, while those expecting wage increases rose from 16.9% to 19.9%.
However, these figures were lower than July's levels, suggesting continued cautiousness among employers due to economic uncertainty. Furthermore, 3.1% of firms in September anticipated retrenchments, up from 2.8% in August. MOM emphasized that this rise, combined with higher actual retrenchments, signals emerging weaknesses in certain parts of the labour market that require close monitoring, despite the overall market's expansion.
The ministry will publish more comprehensive labour market data for the third quarter in mid-December 2026.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
