Singapore Retrenchments Hit Highest Level Since 2020

The Ministry of Manpower reported that Singapore's labor market saw 4,620 retrenchments in the second quarter of 2026, the highest level since the fourth quarter of 2020. This marks an increase from the 3,830 retrenchments recorded in the first quarter of the year, with job losses concentrated in the manufacturing, financial services, and information and communications sectors.

While total employment grew by 11,400 and the overall unemployment rate remained low at 1.9%, conditions softened for resident workers. The six-month re-entry rate for retrenched residents dropped to 54.9% from 60.7% in the previous quarter, and job vacancies fell to 68,600 by June. These declines were particularly evident in the information and communications and financial services sectors.

Acting Manpower Minister Jasmin Lau identified these trends as signs of change in the labor market. She emphasized the government's commitment to supporting displaced workers through career conversion programs, specifically targeting mid-career and older workers aged 50 and above who face a higher risk of involuntary displacement.