Singapore recorded a sharp increase in retrenchments between April and June 2026, with 4,500 workers losing their jobs during the second quarter.
The figure represents a 17.5% increase from the 3,830 retrenchments recorded in the first quarter and marks the highest quarterly total since the final quarter of 2020, when 5,640 workers were laid off amid the COVID-19 pandemic.
Despite the rise in job losses, Singapore’s broader labour market remained relatively resilient, with total employment continuing to expand during the quarter.
Retrenchments driven largely by restructuring
According to figures from the Ministry of Manpower (MOM), the increase in retrenchments was concentrated mainly in outward-facing industries, including the information and communications and manufacturing sectors.
Business restructuring was identified as the main reason behind the layoffs.
This suggests that the latest increase in retrenchments may not necessarily reflect a widespread collapse in demand for workers. Instead, some companies appear to be reorganising their operations, changing their business models or adjusting their workforce requirements.
For workers affected by retrenchment, however, the distinction may offer little immediate comfort as they face the challenge of finding new employment in an increasingly competitive jobs market.
Employment continues to grow despite layoffs
Singapore’s total employment increased by 10,700 positions in the second quarter, higher than the 9,400 jobs added during the first three months of the year.
The latest figure was also broadly similar to the 10,400 jobs added during the same quarter in 2025.
However, employment growth among Singapore citizens and permanent residents was more subdued. Much of the overall increase came from sectors such as construction and manufacturing, where foreign workers accounted for a significant portion of the growth.
Singapore’s overall unemployment rate also remained unchanged at 2% in June 2026.
The combination of rising retrenchments, continued employment growth and a stable unemployment rate points to a labour market undergoing significant changes rather than experiencing a broad-based deterioration.
More employers expect to hire and raise salaries
Businesses also appear to remain cautiously optimistic about hiring.
MOM’s business expectations data showed that 43.9% of employers in June expected to increase their workforce over the following three months. This was an increase from 40.6% in May.
Salary expectations also improved, with the proportion of businesses anticipating wage increases rising from 23.7% in May to 29.3% in June.
At the same time, fewer employers expected to carry out retrenchments. The proportion fell from 3.2% in May to 2.7% in June.
The figures suggest that while companies are continuing to restructure and eliminate certain positions, many businesses are still preparing to recruit workers and increase salaries.
For employees concerned about job security, this could mean opportunities remain available even as certain industries undergo workforce reductions.
MOM said businesses are nevertheless expected to remain cautious about hiring and wage decisions in the months ahead.
The latest figures also highlight the importance of skills upgrading and career mobility for workers affected by retrenchment. As companies restructure, demand may increasingly shift towards workers with skills that match emerging business needs.
For Singaporeans facing redundancy, programmes focused on retraining, job matching and employability could therefore play an increasingly important role in helping them return to work.
While the 4,500 retrenchments in the second quarter are concerning, the continued growth in employment and hiring intentions suggest Singapore’s labour market has not entered a broad-based jobs crisis.
Instead, the data point towards an economy where certain industries and occupations are being reshaped, creating both job losses and new employment opportunities at the same time.