Singapore employment rises in Q3 as retrenchments hit nearly six-year high

Singapore's labor market expanded in the third quarter, but the growth was accompanied by an increase in layoffs. The Ministry of Manpower (MOM) announced 27,700 new jobs, while 4,800 workers were laid off. The figures, released on October 30, indicate that the economy continues to generate jobs, while certain sectors still reduce their workforce.

Despite the overall unemployment rate remaining at 2%, retrenchments hit their highest level in nearly six years for the quarter, according to MOM's advance labor market release for Q3 2026. Employment growth primarily originated from non-resident workers, particularly in construction and manufacturing. Meanwhile, resident employment gains were mainly from essential and public services, including public administration, education, transport and storage, and health and social services.

Growth in outward-facing industries lagged due to global economic uncertainty. The job market's uneven benefits are evident, as while Singapore adds thousands of jobs, some local workers encounter more challenging circumstances. Retrenchments have increased compared to the previous quarter, reaching their highest level since 2020.

The unemployment rate for residents rose slightly from 2.9% to 3%, and the non-resident rate remained unchanged at 2%. NTUC Assistant Secretary-General Yeo Wan Ling emphasized the disparity between job creation and job loss, urging workers to acquire new skills and urging employers to investigate retraining and redeployment options with unions before resorting to layoffs.

Although some businesses anticipate hiring, job cuts persist as a concern. While more employers plan to hire within three months, the number of firms anticipating wage hikes has decreased. Conversely, the percentage of companies considering layoffs has risen from 2.8% in August to 3.1% in September. The MOM's figures, combined with actual job losses, signal weaknesses in specific areas of the labor market.

MOM has outlined various support programs to assist workers and employers adapting to workforce changes. Unemployed individuals can receive up to S$6,000 over six months through the SkillsFuture Jobseeker Support scheme, while mid-career Singaporeans can obtain a S$4,000 SkillsFuture Credit top-up and training allowance. GRaduate Industry Traineeships (GRIT) are available for fresh graduates from the 2026 cohort.

Employers can also access workforce training and job redesign initiatives. The full Q3 2026 Labour Market Report, providing more insights on vacancies, employment by sector, and retrenched residents' employment prospects, is anticipated in mid-December.