Singapore retrenchments rise to highest level since 2020 as job vacancies fall

• Retrenchments rose from 3,830 in 1Q 2026 to 4,620 in 2Q 2026, with the increase concentrated in outward-oriented sectors.
• Job vacancies fell from 73,300 in March to 68,600 in June, while fewer retrenched residents returned to employment within six months.
• Total employment nevertheless grew by 11,400, although resident employment growth slowed to 2,200.

Singapore’s labour market showed further signs of softening in the second quarter of 2026, with retrenchments rising and job vacancies declining.

Retrenchments increased from 3,830 in the first quarter to 4,620 in 2Q 2026. This is the highest since 4Q 2020, when the retrenchments were 5,640.

At the same time, seasonally adjusted job vacancies fell from 73,300 in March to 68,600 in June 2026, and were also below the 76,200 vacancies recorded a year earlier.

The Ministry of Manpower (MOM) released the latest figures in its Labour Market Report Second Quarter 2026 on 21 September 2026

Acting Manpower Minister Jasmin Lau said that this is a concern for some Singaporeans.

“Now, there are certainly still job opportunities, but moving from one job to the next one can be challenging. Our Government will support workers to learn and adapt, and to prepare for roles that they can move into,” she said.

She made the remarks at a visit to Acronis, a multinational cybersecurity and data protection software company.

Retrenchments rise in outward-oriented sectors

The increase in retrenchments was concentrated in outward-oriented industries.

Manufacturing retrenchments rose from 670 to 870, while Information & Communications rose from 530 to 720.

Retrenchments in Financial Services increased from 560 to 710.

Business reorganisation or restructuring remained the main reason for layoffs, accounting for 72.1 per cent of retrenchments.

Resident Professionals, Managers, Executives, and Technicians (PMETs) also saw the largest increase in retrenchment incidence among occupational groups, rising from 2.6 to 3.2 retrenched workers per 1,000 resident employees.

By age, residents in their 50s recorded the highest retrenchment incidence, rising from 3.1 to 3.6 per 1,000 employees. Those in their 40s saw the rate increase from 2.3 to 3.0.

MOM noted that workers in their 50s could face greater job-search challenges, given their higher incidence of retrenchment and higher long-term unemployment rates, and highlighted skills upgrading and career conversion as ways to support their transition to new opportunities.

MOM added that, even though retrenchment figures have increased over the past quarters, it does not see any forward-looking indicators suggesting that retrenchments are a trend relative to recessionary periods.

It said that the quarter’s retrenchments are also sector-specific rather than economy-wide.

Fewer job vacancies as hiring activity softens

Employers also had fewer openings in the second quarter.

Seasonally adjusted job vacancies declined to 68,600 in June, from 73,300 three months earlier.

The decrease was mainly driven by vacancies among PMETs, particularly in Financial Services and Information & Communications.

Financial Services vacancies fell from 5,800 to 4,500, while Information & Communications openings decreased from 5,300 to 4,400 over the quarter.

There were still more jobs available than unemployed persons, with 1.48 vacancies per unemployed person in June 2026, broadly unchanged from the previous quarter.

For younger jobseekers and fresh graduates, entry-level PMET opportunities remained sizeable.

There were 31,700 entry-level PMET vacancies in June, accounting for 45.3 per cent of job vacancies, compared with 32,800 in March.

The average monthly recruitment rate also fell from 1.6 per cent in 1Q 2026 to 1.4 per cent in 2Q 2026, while the resignation rate remained at 1.0 per cent. MOM said fewer vacancies and a lower recruitment rate pointed to softer hiring activity.

Retrenched workers taking longer to return to work

Another sign of softer labour market conditions was the decline in the proportion of retrenched residents who returned to work within six months.

The six-month re-entry rate fell from 60.7 per cent in 1Q 2026 to 54.9 per cent in 2Q 2026.

The 12-month re-entry rate, however, remained broadly stable, increasing slightly from 69.4 per cent to 69.8 per cent.

Workers aged 50 to 59 saw their six-month re-entry rate fall more sharply, from 51.8 per cent to 41.9 per cent.

NTUC Deputy Secretary-General Desmond Tan said the latest figures were concerning for older workers, particularly those in their 50s, who recorded the highest retrenchment incidence among all age groups and a lower six-month re-entry rate.

He said: “These are concerning signs, and NTUC is taking action to support our older workers. As working lives lengthen, we want to help workers remain employable and continue contributing for as long as they wish to. NTUC will continue to support workers’ employability through training, skills upgrading and job redesign.

He added that the Tripartite Workgroup on Senior Employment is exploring practical ways to give seniors more options to continue working, including access to flexible work.

Total employment continues to grow, but resident growth slows

Despite the softer indicators, Singapore continued to record overall employment growth.

Total employment increased by 11,400 in 2Q 2026, higher than the 9,400 increase in the previous quarter and the 10,400 recorded a year earlier. This marked the nineteenth consecutive quarter of employment growth.

However, resident employment growth moderated from 5,400 in 1Q to 2,200 in 2Q.

Resident employment gains were observed in sectors including Transportation & Storage, Public Administration & Education, Health & Social Services, Professional Services, Financial Services, and Information & Communications.

Non-resident employment increased by 9,200, driven mainly by Work Permit Holders in Construction and Manufacturing.

Unemployment remained low and broadly stable in June, at 1.9 per cent overall, 2.9 per cent among residents, and 3.0 per cent among citizens.

The resident long-term unemployment rate, however, edged up from 0.9 per cent in March to 1.0 per cent in June.

Ms Lau said that the Government is committed to supporting and creating pathways for workers to build new skills and move into job opportunities.

Employers remain cautious despite improved hiring expectations

The proportion of firms intending to hire over the next three months increased from 43.9 per cent in June to 48.7 per cent in July.

However, the share expecting to raise wages slipped from 29.3 per cent to 27.9 per cent.

Both hiring and wage expectations also remained below their February 2026 levels, pointing to continued caution among employers.

NTUC Assistant Secretary-General Yeo Wan Ling said that while the overall labour market remained resilient, the rise in retrenchments and weaker re-entry outcomes were signs that warranted attention.

She said: “But behind the headline numbers, there are signs we need to watch. Retrenchments have risen, and retrenched workers are taking longer to find their next job. On the ground, I sense that anxiety.”

Ms Yeo encouraged workers looking for employment to tap available career support, including NTUC’s e2i (Employment and Employability Institute).
  

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