Restructuring drives job cuts as vacancies fall and re-employment takes longer.
Singapore’s labor market continued to expand in the second quarter of 2026, but rising retrenchments and slower re-employment revealed growing pressure on some workers.
Retrenchments Rise to 4,620
Singapore recorded 4,620 retrenchments in the second quarter of 2026, up from 3,830 in the previous quarter and the highest level since the fourth quarter of 2020. The retrenchment rate increased to 2.0 per 1,000 employees, compared with 1.6 in the first quarter. The Ministry of Manpower said the increase was driven mainly by business reorganization and restructuring in outward-oriented sectors such as manufacturing, information and communications, and financial services.
Retrenched Workers Take Longer to Find Jobs
The proportion of retrenched residents who returned to employment within six months fell to 54.9 percent, from 60.7 percent in the previous quarter. The 12-month re-entry rate remained broadly stable at 69.8 percent, indicating that some retrenched workers were taking longer to secure new roles. Acting Manpower Minister Jasmin Lau said the slower transition between jobs was a concern for some Singaporeans.
Older Workers Face Greater Retrenchment Risk
Workers in their 50s recorded the highest retrenchment incidence at 3.6 per 1,000 resident employees during the quarter. Their unemployment rate also increased to 3.1 percent in June from 2.9 percent in March, while their long-term unemployment rate edged up to 1.2 percent from 1.1 percent. MOM said the figures suggest this age group faces greater risk of involuntary displacement and more difficulty finding new employment.
Job Vacancies Decline Despite Employment Growth
Singapore’s overall employment still grew by 11,400 from April to June, marking the 19th consecutive quarter of expansion. Resident employment growth, however, slowed to 2,200 from 5,400 in the first quarter. Job vacancies also declined to 68,600 in June from 73,300 in March, mainly because of fewer PMET vacancies in financial services and information and communications.
Hiring Outlook Remains Positive but Cautious
MOM said business surveys indicated a positive but cautious outlook. The share of firms intending to hire in the next three months rose to 48.7 percent in July from 43.9 percent in June, while those planning wage increases slipped to 27.9 percent from 29.3 percent. The ministry said the government would continue supporting workers through workforce transformation, skills upgrading, career conversion, and jobseeker assistance programs.
Singapore’s Q2 figures show a labor market that continues to create jobs while becoming more difficult for some retrenched workers, particularly those in their 50s. For Singaporeans, falling vacancies and longer job searches will remain important indicators to watch. For Indonesians seeking employment or professional opportunities in Singapore, the figures provide a clearer picture of current hiring conditions and competition in the labor market.
Sources: Asia One (2026) , CNA (2026)
Keywords: Singapore Retrenchments 2026, Singapore Jobs, Singapore Labor Market, Q2 Employment, Job Vacancies Singapore, Older Workers Singapore
