3Q 2026 Labour Market Advance Release: Singapore employment growth accelerates as retrenchments edge up

• Total employment grew by 27,700 in 3Q 2026, up from 11,400 in the previous quarter, with non-residents accounting for most of the increase.
  
  
• Retrenchments rose to 4,800, while resident and citizen unemployment rates edged up in September.
  
  
• Hiring and wage expectations improved from August but remained below July’s levels, while the share of firms expecting to retrench increased.
  
  

Singapore’s employment growth accelerated in the third quarter of 2026, although retrenchments increased and resident unemployment edged higher as conditions remained uneven across sectors.

Total employment, excluding migrant domestic workers, grew by 27,700, more than double the 11,400 increase in the previous quarter and above the 25,100 recorded a year earlier.

The Ministry of Manpower (MOM) released the preliminary figures in its Labour Market Advance Release Third Quarter 2026 on 30 October 2026.

MOM said higher retrenchments, together with an increase in the share of firms expecting to cut jobs, pointed to emerging weaknesses in parts of the labour market that required close monitoring.

Employment growth remains uneven across sectors

Both resident and non-resident employment grew faster than in the previous quarter.

For residents (Singapore citizens and permanent residents), employment growth was mainly supported by essential and public services, including Public Administration & Education, Transportation & Storage, and Health & Social Services.

Resident employment growth in outward-oriented sectors such as Information & Communications, Financial Services and Professional Services remained subdued amid global economic uncertainty.

Non-residents accounted for most of the overall increase in employment, mainly in Construction and Manufacturing.

Retrenchments rise while resident unemployment edges higher

Retrenchments rose to 4,800 in 3Q 2026, up from 4,620 in the previous quarter. The incidence of retrenchment remained unchanged at 2 per 1,000 employees.

Business reorganisation remained the main reason for retrenchments, which stayed elevated in selected outward-oriented sectors, including Information & Communications, Financial Services and Manufacturing.

By broad sector, Services recorded 4,000 retrenchments, up from 3,580 in 2Q. Retrenchments fell from 870 to 700 in Manufacturing and from 170 to 100 in Construction.

Responding to the report, NTUC Assistant Secretary-General Yeo Wan Ling said workers needed support to move into new roles as the nature of work changed.

“To employers, before considering retrenchment, work with NTUC and our unions to explore whether your workers can be retrained and redeployed into new or redesigned roles. Retrenchment should be the last resort,” she said.

The seasonally adjusted overall unemployment rate held at 2 per cent in September, unchanged from August.

The resident unemployment rate rose from 2.9 per cent to 3 per cent over the same period, while the citizen unemployment rate increased from 3 per cent to 3.1 per cent.

Employers remain cautious about hiring and wages

Hiring and wage expectations improved in September, following a decline in August.

The share of firms expecting to hire over the next three months rose from 30.5 per cent in August to 42.3 per cent in September. The proportion expecting to raise wages increased from 16.9 per cent to 19.9 per cent.

Both measures remained below July’s levels, suggesting that employers were still cautious about hiring and wage increases amid continued uncertainty, MOM said.

The share of firms expecting to retrench also edged up from 2.8 per cent in August to 3.1 per cent in September.

Career and skills support for workers

Ms Yeo also encouraged workers to prepare for changes in the labour market.

“To workers, start preparing now. Pick up new skills, and keep an open mind about opportunities in growing sectors,” she said.

MOM also said companies would need to continue adapting and investing in their workforce, while workers would need to keep their skills relevant amid an uncertain global outlook and rapid technological change.

Singaporeans seeking career guidance and job matching can approach NTUC’s e2i (Employment and Employability Institute) and the Skills and Workforce Development Agency (SWDA).

Under the SkillsFuture Jobseeker Support scheme, eligible workers who are involuntarily unemployed can receive up to $6,000 in temporary financial support over six months while they actively look for work.

Eligible mid-career Singaporeans can tap the SkillsFuture Level-Up Programme, which offers a $4,000 SkillsFuture Credit (Mid-Career) top-up and a training allowance. Lower-wage workers can use Workfare Skills Support to upskill and reskill.

Fresh graduates from the 2026 cohort can apply for GRaduate Industry Traineeships (GRIT) through MyCareersFuture and Careers@Gov to gain industry-relevant skills and experience.

Employers can also tap Career Conversion Programmes and the Mid-Career Pathways Programme to support workforce development.

The full Labour Market Report Third Quarter 2026, due in mid-December, will provide further details, including resident and non-resident employment breakdowns, job vacancies, labour turnover and re-entry rates among retrenched residents.

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