Singapore layoffs reach highest level since 2020 pandemic

Singapore recorded 4,800 retrenchments in the third quarter of 2026, the highest number since the COVID-19 pandemic in late 2020. According to a report from the Ministry of Manpower, layoffs rose from 4,620 in the second quarter, driven largely by business restructuring in outward-oriented sectors.

Despite the rise in layoffs, the labor market showed signs of expansion, with total employment growing by 27,700 in the third quarter, more than double the 11,400 increase seen in the previous quarter. Growth was supported by the essential services and public sectors, while non-resident employment contributed significantly through the construction and manufacturing industries.

The overall unemployment rate remained stable at 2.0 percent in September 2026. However, resident and citizen unemployment rates saw slight increases to 3.0 percent and 3.1 percent, respectively. The ministry noted that elevated retrenchment levels and an increase in companies intending to downsize point to emerging weaknesses in certain parts of the labor market that require close monitoring.