Singapore’s labour market remained resilient in the first quarter of 2026, but fresh figures from the Ministry of Manpower (MOM) show a slight increase in retrenchments as businesses grapple with global economic uncertainty.
According to MOM’s Labour Market Report released on Jun. 15, a total of 3,830 workers were retrenched in Q1 2026, up from 3,690 in the previous quarter.
While the increase is relatively modest, experts say it could signal growing caution among employers, particularly in sectors heavily exposed to international markets.
Manufacturing, Financial Services And Professional Services Most Affected
The report found that retrenchments were largely concentrated in external-facing industries, namely:
- Manufacturing
- Financial Services
- Professional Services
MOM said most layoffs were not due to company closures but were instead driven by business restructuring and organisational reorganisation efforts.
The retrenchment rate remained relatively low at 1.6 per 1,000 employees, which MOM noted is still within non-recessionary norms.
However, the numbers suggest businesses are becoming increasingly careful as geopolitical tensions, rising operating costs and an uncertain global outlook continue to weigh on future plans.
Job Market Still Strong Despite Layoffs
Despite the increase in layoffs, Singapore’s overall labour market remains healthy.
Total employment grew by 9,400 jobs during Q1 2026, marking the 18th consecutive quarter of employment growth since late 2021.
Singapore also recorded 73,300 job vacancies in March 2026, with approximately 1.46 job openings available for every unemployed person.
Unemployment rates remained stable at:
- 2.0% overall
- 2.9% for residents
- 3.1% for Singapore citizens
These figures suggest that employers are still hiring, although growth may be slowing.
More Retrenched Workers Are Finding Jobs Faster
One encouraging sign is that more retrenched workers are successfully re-entering the workforce.
The proportion of residents who found employment within six months of losing their jobs improved from 57.4% in Q4 2025 to 60.7% in Q1 2026.
This marks the second consecutive quarter of improvement.
The government says this reflects the continued demand for workers and the effectiveness of ongoing employment support programmes.
Companies Expected To Hire More Cautiously
Looking ahead, MOM expects Singapore’s labour market to remain resilient but warned that firms may become more conservative when it comes to hiring and salary increases.
Businesses are facing several challenges, including:
- Heightened global economic uncertainty
- Geopolitical tensions
- Elevated input and operating costs
- Weaker external demand
If these conditions worsen, labour demand could moderate further in the coming months.
Support Available For Affected Workers
Singaporeans who lose their jobs can tap on various support schemes.
The SkillsFuture Jobseeker Support Scheme, launched in April 2025, provides eligible involuntarily unemployed individuals with temporary financial support of up to S$6,000 over six months, provided they actively search for employment.
Workers can also access career coaching through Workforce Singapore (WSG) and NTUC’s Employment and Employability Institute (e2i), while employers can receive grants to redesign jobs and retrain employees.
Although retrenchments have edged up, MOM stressed that Singapore’s labour market remains fundamentally strong and that workers should continue upgrading their skills to stay competitive in a rapidly changing economy.