Singapore labour market expands for 19th straight quarter as retrenchments hit five‑year high

Retrenchments in Singapore rose 17.5 % in the second quarter of 2026, reaching 4,500 jobs – the highest quarterly level since Q4 2020. The increase was concentrated in outward‑oriented sectors, notably information and communications and manufacturing, and was driven mainly by business restructuring.

Despite the rise in layoffs, total employment grew by 10,700 workers, marking the 19th consecutive quarter of job growth. The expansion was led by non‑resident hires in construction and manufacturing, while resident employment grew more slowly, focused on essential and public services. Unemployment remained low and stable at 2 % overall, with resident unemployment at 2.9 % and citizen unemployment easing to 3 %.

Employer sentiment stayed upbeat: the share of firms planning to hire in the next three months rose to 43.9 %, and those expecting to raise wages increased to 29.3 %. The proportion of firms anticipating further retrenchments fell to 2.7 %. The Ministry of Manpower said these trends indicate resilient labour demand even as firms remain cautious amid global uncertainty.