S’pore Q3 2026 retrenchments hit 4,800, a nearly six-year high

Singapore's retrenchments surged to 4,800 in Q3 2026, marking a nearly six-year high, according to the Ministry of Manpower's (MOM) Labour Market Advance Release. The figure climbed by 3.9% from 4,620 retrenchments in Q2, surpassing the previous high of 5,640 layoffs in Q4 2020. Retrenchment incidence remained constant at 2.0 per 1,000 employees, with business reorganization as the main driver.

Sectors such as information and communications, financial services, and manufacturing continued to experience elevated layoffs. However, total employment grew by 27,700 in the third quarter, extending Singapore's labour market expansion to a 20th consecutive quarter. Non-residents led employment growth, particularly in construction and manufacturing, while residents saw growth supported by essential and public services.

Despite mixed forward-looking indicators, a MOM poll showed that more companies expected to hire and raise wages in the next three months. However, a slightly larger share anticipated retrenchments, suggesting employers remained cautious amid economic uncertainty. The overall unemployment rate remained low and unchanged at 2%, with resident and citizen rates up slightly.

MOM warned that emerging weaknesses in parts of the labour market required close monitoring, emphasizing the need for companies to adapt and invest in their workforce while workers kept their skills relevant. The full labour market report for Q3 will be released in mid-December.