# Singapore economic performance 2026

> Live situation record from CLSTR: https://clstr.news/situations/singapore-economic-performance-2026
> Updated: 2026-08-05T20:30:46.000Z. Sources: 13. Developments: 4.

In early July 2026 Singapore’s retail sector showed a slowdown, with sales growth falling to 3 % in May, while the labour market kept expanding for a 19th consecutive quarter. Layoffs rose 17.5 % to 4,500 jobs, yet total employment still increased by 10,700 workers, largely due to non‑resident hires in construction and manufacturing, and unemployment remained low at about 2 % (resident 2.9 %, citizen 3 %).

In the second quarter, the Ministry of Manpower reported that the 4,500 layoffs were the highest level since Q4 2020, raising the layoff rate to 1.9 per 1,000 employees. Redundancies were concentrated in export‑oriented and professional, knowledge‑based sectors, especially among degree‑holding staff aged 50‑59. Despite this, employment growth persisted, driven by local hiring in key services and the public sector and continued non‑resident recruitment in construction and manufacturing. A full labour‑market report is slated for release in mid‑September.

By early August 2026, the tech sector added to the layoff trend. Private technology firms accelerated staff cuts amid weaker venture funding, while GovTech and other public agencies restructured digital workforces. The Ministry of Manpower noted severance packages are set by contracts, collective agreements and advisory letters, typically ranging from two weeks to a month’s salary per year of service, with public‑sector unions negotiating additional terms. In response, HR service providers have refined outreach tactics—up‑to‑date contact lists, targeted mid‑week morning emails, and messaging that addresses staffing shortages and compliance—to connect with HR decision‑makers managing hiring, training and employee welfare.

## Timeline

### 2026-08-05: Singapore tech sector layoffs drive new HR outreach and support measures

Singapore tech layoffs prompt public and private sector restructuring, while firms adopt targeted email outreach to reach HR decision‑makers amid the labor market shift.

4 sources. https://clstr.news/cluster/singapore-tech-sector-layoffs-drive-new-hr-outreach-and-support-measures

### 2026-08-03: Singapore records highest layoffs in over five years

Singapore's Ministry of Manpower reported 4,500 layoffs in Q2 2026, the highest since 2020, while total jobs rose 10,700 and unemployment stayed around 2 %.

2 sources. https://clstr.news/cluster/singapore-records-highest-layoffs-in-over-five-years

### 2026-07-31: Singapore labour market expands for 19th straight quarter as retrenchments hit five‑year high

Singapore’s Q2 2026 retrenchments rose 17.5 % to a five‑year high, yet total employment grew by 10,700 for the 19th straight quarter and unemployment stayed at 2 %, with hiring sentiment improving.

7 sources. https://clstr.news/cluster/singapore-q2-2026-retrenchments-surge-175-to-five-year-high-amid-continued-job-growth

### 2026-07-06: Singapore retail sales growth slows to 3% in May 2026

Singapore's May 2026 retail sales rose 3% YoY, the slowest since January, with strong gains in recreational goods but declines in food, alcohol and motor vehicles.

6 sources. https://clstr.news/cluster/malaysias-klci-rises-as-asian-markets-anticipate-upside

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Cite as: Singapore economic performance 2026. CLSTR, https://clstr.news/situations/singapore-economic-performance-2026