Singapore saw a fresh increase in employee retrenchments during the July-September quarter of 2026, with layoffs reaching their highest level in nearly six years. Business reorganisations contributed to the rise, according to the Ministry of Manpower (MOM). The city-state recorded 4,800 retrenchments in the third quarter, compared with 4,620 in the April-June period. The latest figure marks the highest number of job cuts since the October-December quarter of 2020, when 5,640 employees lost their jobs amid the Covid-19 pandemic.
The increase comes even as Singapore’s employment market continues to expand. However, the ministry has flagged emerging signs of weakness, particularly in sectors exposed to international markets, and noted a rise in the proportion of businesses considering workforce reductions.
The latest labour market report released by the Ministry of Manpower on Friday showed that retrenchments have continued to remain elevated, particularly across outward-oriented industries.
The 4,800 job cuts recorded between July and September represent an increase of 180 from the previous quarter. The development highlights the growing pressure on certain parts of Singapore’s labour market as companies undertake organisational changes.
Retrenchments had moderated considerably following the pandemic-era surge in 2020. During that period, restrictions on international travel and widespread job losses prompted several foreign workers to leave Singapore, contributing to a tighter labour market.
Singapore Unemployment Rate Remains At 2%
Despite the increase in retrenchments, Singapore’s overall unemployment rate remained stable at 2 per cent in September 2026.
However, the situation was slightly different for residents and citizens. Their respective unemployment rates increased to 3 per cent and 3.1 per cent in September, compared with 2.9 per cent and 3 per cent in August.
The figures suggest that while the broader employment market has maintained stability, certain sections of the workforce are experiencing relatively higher unemployment.
Another indicator pointing towards possible labour market pressure was the proportion of companies planning to reduce their workforce. The share of businesses expecting to carry out retrenchments over the following three months increased to 3.1 per cent, up from 2.8 per cent a month earlier.
Ministry Flags Emerging Weaknesses In Labour Market
The Ministry of Manpower acknowledged that employment conditions remained broadly supportive, but cautioned that the combination of elevated retrenchments and increasing layoff intentions required attention.
“While the labour market continued to expand, retrenchments remained elevated and, together with higher intentions to retrench, point to emerging weaknesses in parts of the labour market that warrant close monitoring,” the ministry said.
The assessment highlights the contrasting trends emerging in Singapore’s employment market. While businesses are continuing to add jobs overall, some are also restructuring their operations and reducing headcounts.
The ministry’s observations suggest that developments in outward-oriented industries will remain important in assessing the strength of the country’s labour market in the coming months.
Singapore Employment Growth Accelerates In Q3 2026
Interestingly, the rise in retrenchments did not prevent Singapore from recording stronger overall employment growth during the third quarter.
Total employment increased by 27,700 between July and September 2026. This was substantially higher than the addition of 11,400 jobs recorded in the previous quarter.
The latest employment gain was also higher than the 25,100 increase registered during the corresponding period a year earlier.
The figures indicate that job creation across the economy has continued despite the rise in workforce reductions at individual companies.
