George Yang, Author at Goody Feed

Retrenchments in Singapore rose to their highest level in more than five years during the second quarter of 2026. A total of 4,500 workers were retrenched between April and June, according to preliminary data released by the Ministry of Manpower (MOM) on 31 July. This was the highest quarterly figure since the fourth quarter of 2020, when 5,640 workers were retrenched as the COVID-19 pandemic weighed heavily on the labour market. However, the wider employment picture was not entirely negative. Singapore’s total employment continued to grow, while unemployment rates remained low and stable. Retrenchments Rose by 17.5 Per Cent The 4,500 retrenchments recorded in the second quarter represented a 17.5 per cent increase from the 3,830 reported in the first quarter. The incidence of retrenchment also rose from 1.6 to 1.9 retrenched workers for every 1,000 employees. Of the 4,500 retrenchments, 3,500 were in the services sector, 800 were in manufacturing and 200 were in construction. MOM said the increase was concentrated in selected outward-oriented industries, including information and communications and manufacturing. In simple terms, outward-oriented industries are more exposed to overseas demand, international trade and changes in the global economy. Most of the retrenchments were caused by business reorganisation or restructuring, rather than a broad collapse in demand for workers. Despite reaching the highest level since 2020, the figure remained well below those recorded during economic downturns. Quarterly retrenchments ranged from 5,980 to 12,760 during the Global Financial Crisis, and from 5,640 to 9,120 during the COVID-19 pandemic. Singapore’s Total Employment Still Grew At the same time, Singapore’s total employment grew by 10,700 during the second quarter, excluding migrant domestic workers. This was higher than the revised increase of 9,400 in the first quarter and broadly similar to the 10,400 increase recorded during the same period in 2025. It was also the 19th consecutive quarter in which employment expanded since the fourth quarter of 2021. However, most of the latest growth came from non-resident employment in construction and manufacturing. Employment among Singapore citizens and permanent residents continued growing, but at a slower rate than in the previous quarter. Resident employment growth was concentrated in essential and public services, including transportation and storage, health and social services, public administration and education. Unemployment Rates Remained Stable Singapore’s overall unemployment rate stood at 2 per cent in June 2026, unchanged from March. The resident unemployment rate remained at 2.9 per cent, while the citizen unemployment rate dipped slightly from 3.1 per cent in March to 3 per cent in June. Retrenchment figures and unemployment rates measure different things. MOM defines retrenchment as a dismissal caused by redundancy or the reorganisation of a business. Unemployment measures people who are not working but are actively seeking and available for work. A person who is retrenched but quickly secures another job would therefore not remain unemployed. Employers Appear More Willing to Hire MOM’s surveys also found that employers’ hiring expectations improved in June. The proportion of firms expecting to hire workers within the next three months rose from 40.6 per cent in May to 43.9 per cent in June. The proportion expecting to raise wages increased from 23.7 per cent to 29.3 per cent. Meanwhile, the share of firms expecting to retrench workers fell from 3.2 per cent to 2.7 per cent. MOM said the figures indicated that labour demand remained resilient, although businesses were likely to remain cautious because of economic uncertainty and continued restructuring in some industries. What Retrenched Workers May Be Entitled To According to MOM, employees who have served a company for at least two years are eligible for retrenchment benefits. The amount depends on the employment contract or collective agreement. Where no amount has been specified, it must be negotiated between the employer and employee, or the employee’s union. The prevailing norm is between two weeks and one month of salary for each year of service, depending on the company’s financial position and industry. Eligible involuntarily unemployed workers may also receive up to S$6,000 over six months through the SkillsFuture Jobseeker Support scheme while actively searching for work. Career coaching, job-matching and training assistance are also available through government agencies and NTUC’s Employment and Employability Institute. More Detailed Figures Will Be Released in September The latest numbers are advance estimates and remain preliminary. MOM’s full Labour Market Report for the second quarter of 2026 is scheduled to be released in mid-September. It will contain more detailed information, including sectoral employment figures, job vacancies, labour turnover and the proportion of retrenched residents who found another job.