Retrenchments in Singapore rose to 4,620 in the second quarter of 2026, reaching the highest level since Q4 2020, the latest labour market data showed on Monday (Sep 21).
This raised the retrenchment incidence to 2.0 per 1,000 employees, up from 1.6 in the previous quarter.
The higher retrenchments were driven by business reorganisation and restructuring in outward-oriented sectors like manufacturing, information and communications, and financial services, according to the Ministry of Manpower (MOM)MOM said the labour market remained resilient, with continued employment growth and low unemployment. But other indicators showed “signs of softening”.
“Conditions became less favourable for some resident workers, as resident employment growth moderated, retrenchments increased and six-month re-entry outcomes weakened,” the ministry said in a press release.
For the April to June period, the rate at which workers re-entered the workforce six months after retrenchment slowed to 54.9 per cent, lower than the 60.7 per cent recorded in the previous quarter. The 12-month re-entry rate remained stable at 69.8 per cent.Speaking to reporters during a visit to cybersecurity firm Acronis, Acting Manpower Minister Jasmin Lau noted these “signs of change”.
“Fewer job vacancies were added this quarter, and some workers are finding the transition into their next role taking slightly longer. This is a concern for some Singaporeans,” she said.
Although job opportunities remain, moving from one job to the next can be challenging, said Ms Lau.
She pointed to career conversion programmes, which target mid-career workers, as one way the government will support workers.
“Instead of learning a new skill and then hoping to find a job that uses it, workers train for actual roles that companies need. They learn on the job, gain real experience, and build on the skills they already have,” she said.
CNA
