Singapore’s Q2 2026 Labour Market: Record Retrenchments Amid Ongoing Job Growth

On July 31, the Ministry of Manpower (MOM) released advance data showing that 4,500 workers were retrenched between April and June 2026. This 17.5 % rise from the previous quarter’s 3,830 layoffs represents the highest quarterly retrenchment figure since the fourth quarter of 2020, when 5,640 workers were let go. The incidence of retrenchments climbed to 1.9 per 1,000 employees, up from 1.6 in the prior quarter. MOM attributed the increase to business restructuring concentrated in outward-oriented sectors such as information and communications and manufacturing.

Channel News Asia - CNAS’pore layoffs rise 17.5% from last quarter to highest since 2020, but more firms are still looking to hire: MOM Singapore labour market adds 10,700 jobs in Q2, unemployment stays at 2% Singapore's labor market continues to expand in Q2 despite global uncertainty Singapore retrenchments hit highest quarterly level since 2020, with 4,500 workers laid off Singapore employment grows in Q2 even as retrenchments rise to highest since 2020

Despite the uptick in layoffs, total employment rose by 10,700 jobs in the same period, extending a streak of growth to 19 consecutive quarters. The increase was broadly in line with the 10,400 jobs added in Q2 2025. Resident employment grew more slowly, driven mainly by essential and public-service hiring, while the bulk of the net gain came from non-resident workers in construction and manufacturing. The overall unemployment rate held steady at 2 % in June, unchanged from March, with resident unemployment at 2.9 % and citizen unemployment at 3.0 %.

Singapore’s Unemployment Rate Dips to 2.0% in Q2 2025, Signaling Labor Market Resilience Singapore labour market adds 10,700 jobs in Q2, unemployment stays at 2% S’pore layoffs rise 17.5% from last quarter to highest since 2020, but more firms are still looking to hire: MOM Singapore retrenchments hit highest quarterly level since 2020, with 4,500 workers laid off Singapore employment grows in Q2 even as retrenchments rise to highest since 2020 Channel News Asia - CNA

• Outward-oriented sectors: Layoffs were most pronounced in information and communications and manufacturing, where firms rely heavily on external demand, exports, and global supply-chain conditions.

The Straits Times

• Non-resident contribution: Construction and manufacturing employed the majority of foreign workers, accounting for most of the employment expansion.

Singapore retrenchments hit highest quarterly level since 2020, with 4,500 workers laid off

• Resident trends: Gains among Singapore citizens and permanent residents were limited to essential and public-service roles, reflecting a slower pace of domestic hiring.

Singapore's labor market continues to expand in Q2 despite global uncertainty

Forward-looking indicators showed that 43.9 % of firms expected to hire over the next three months, up from 40.6 % in May, while the share planning wage increases rose to 29.3 % from 23.7 %. The proportion of firms anticipating further retrenchments fell to 2.7 % from 3.2 %. MOM cautioned that, although hiring and wage sentiment have improved, they remain below pre-crisis levels observed before the energy shock triggered by the Iran war in early 2024.

Singapore employment grows in Q2 even as retrenchments rise to highest since 2020

• “While artificial intelligence can automate tasks, areas such as policymaking and stakeholder engagement in public sectors continue to rely on human judgment,” — the spokesperson

The Straits Times

The coexistence of record-high layoffs and sustained job creation underscores a labour market that is adjusting to external pressures without losing overall momentum. The concentration of retrenchments in export-linked sectors suggests that global economic uncertainty—particularly geopolitical tensions and trade policy shifts—continues to shape corporate restructuring decisions. Meanwhile, the reliance on non-resident workers for construction and manufacturing highlights Singapore’s ongoing dependence on foreign labour to sustain growth.

The Straits Times

MOM’s forward-looking indicators point to a cautiously optimistic outlook: hiring intentions are rising, wage-increase plans are expanding, and retrenchment expectations are declining. However, the ministry’s warning that labour demand, while resilient, remains below pre-crisis benchmarks signals that firms may retain a measured approach to expansion amid persistent global headwinds. Continuous upskilling and workforce transformation programs, such as the SkillsFuture initiatives, are likely to play a pivotal role in aligning the domestic talent pool with evolving sectoral needs.

The Straits Times