Singapore recorded 4,800 retrenchments in the third quarter of 2026, the highest quarterly figure since the final quarter of 2020.
But employment also grew faster, increasing by 27,700 compared with 11,400 in the previous quarter.
The figures are preliminary estimates from the Ministry of Manpower’s (MOM) advance labour market release published on 30 October.
Retrenchments Rise From 4,620 to 4,800
The retrenchment count increased from 4,620 in the second quarter. The last higher quarterly figure was in the fourth quarter of 2020, when 5,640 workers were retrenched.
Despite the higher number, the retrenchment rate held at two per 1,000 employees.
MOM said business reorganisation remained the main reason for retrenchments. Layoffs stayed elevated in sectors exposed to overseas markets, including information and communications, financial services and manufacturing.
Employment Growth Picks Up
The increase of 27,700 in total employment was also above the 25,100 recorded in the third quarter of 2025. The employment figures exclude migrant domestic workers.
Employment grew faster for both residents and non-residents than in the preceding quarter. Residents refer to Singapore citizens and permanent residents.
Essential and public services continued to support most resident employment growth. Growth in sectors exposed to overseas markets remained subdued, which MOM linked to global economic uncertainty.
Non-residents accounted for most of the overall employment increase, mainly in construction and manufacturing.
Meanwhile, the overall unemployment rate stayed at 2% in September.
Resident unemployment rose from 2.9% in August to 3%, while citizen unemployment increased from 3% to 3.1%.
Hiring Expectations Improve, but Employers Remain Cautious
In September, 42.3% of firms expected to hire over the next three months, up from 30.5% in August.
The share expecting to raise wages increased from 16.9% to 19.9%. However, both measures remained below July’s levels.
The proportion expecting to retrench also rose, from 2.8% to 3.1%. MOM said this, together with higher actual retrenchments, indicated weaknesses emerging in parts of the labour market that needed close monitoring.
Eligible people who become involuntarily unemployed can receive up to S$6,000 over six months through the SkillsFuture Jobseeker Support scheme while actively looking for work.
The full Q3 labour market report is due in mid-December. It will include more detailed employment figures, job vacancies and information on retrenched residents returning to work.
