SINGAPORE – Retrenchments edged up in the third quarter of 2026, according to preliminary labour market data from the Ministry of Manpower (MOM) on Oct 30.
There were 4,800 layoffs between July and September, up 3.9% from 4,620 in the previous quarter, the highest numbers since late 2020. The incidence of retrenchment held constant at 2.0 for every 1,000 employees.
Business reorganisation continued to be the main driver of retrenchments, said MOM, with layoffs remaining elevated in selected outward-oriented sectors such as information and communications, financial services and manufacturing.
Employment grew more quickly than in the previous quarter for both residents and non-residents, with the latter accounting for the majority of employment growth.
Total employment rose by 27,700, up from 11,400 in the previous quarter and 25,100 in the same period last year.
Growth in resident employment was mainly supported by essential and public services, while non-resident employment growth was mainly in sectors such as construction and manufacturing, MOM said.
The overall unemployment rate held unchanged at 2.0% in September, with resident and citizen unemployment rates up slightly at 3.0% and 3.1% respectively, from 2.9% and 3.0% in August.
Looking ahead, more companies in an MOM poll expected to hire and raise wages over the next three months, but a slightly larger share of firms also expected to retrench.
The share of firms expecting to hire in the next three months rose from 30.5% in August to 42.3% in September, while those expecting to raise wages rose from 16.9% to 19.9%. These figures were below July’s levels, suggesting that employers remained cautious amid economic uncertainty, MOM said.
Meanwhile, 3.1% of firms said in September that they expected to retrench, up from 2.8% in August.
“This increase, alongside higher actual retrenchments, points to emerging weaknesses in parts of the labour market that warrant close monitoring, even as the overall market continued to expand,” said MOM.
The ministry will release fuller labour market data for the third quarter in mid-December 2026.
Source : https://www.straitstimes.com/business/retrenchments-in-singapore-inch-up-in-q3-2026
