Singapore retrenchments hit 4,800 in Q3, highest since 2020
- Singapore retrenchments rose to 4,800 in 3Q 2026 from 4,620 in 2Q 2026.
- Services accounted for 4,000 retrenchments, manufacturing 700 and construction 100.
- Total employment grew by 27,700, excluding Migrant Domestic Workers.
- The share of firms expecting to retrench edged up to 3.1% in September from 2.8%.
SINGAPORE, SINGAPORE — Singapore employers retrenched 4,800 workers in the third quarter of 2026, the most since 2020, even as overall employment grew faster. Retrenchments rose from 4,620 in the second quarter, while total employment increased by 27,700, excluding Migrant Domestic Workers.
Restructuring drives the cuts
The incidence of retrenchment held at 2.0 per 1,000 employees, and business reorganization remained the main driver. The Ministry of Manpower (MOM) published the preliminary figures in its labour market advance release on Oct. 30.
Retrenchments stayed elevated in selected outward-oriented sectors, which MOM defines as information and communications, financial services and manufacturing. Services accounted for 4,000 of the quarter’s retrenchments, manufacturing 700 and construction 100, and MOM’s chart of quarterly retrenchments shows the total last ran higher in 2020.
Hiring grows, unevenly
Employment growth of 27,700 compared with 11,400 in the second quarter and 25,100 a year earlier. Non-resident employment accounted for the majority of growth, mainly in construction and manufacturing, while resident gains came mostly from essential and public services.
The overall unemployment rate stayed at 2.0% in September. Resident and citizen unemployment rates edged up to 3.0% and 3.1%, from 2.9% and 3.0% in August.
Employers stay cautious
Forward-looking indicators were mixed. The share of firms expecting to hire over the next three months rose to 42.3% in September from 30.5% in August, and the share expecting to raise wages rose to 19.9% from 16.9%, though both stayed below July’s levels.
The share of firms expecting to retrench edged up to 3.1% from 2.8%. MOM said this, alongside higher actual retrenchments, “points to emerging weaknesses in parts of the labour market that warrant close monitoring.”
What it means for employers
MOM said companies will need to keep adapting and investing in their workforce amid a more uncertain global outlook and rapid technological change. It pointed employers to schemes such as the SkillsFuture Workforce Development Grant (Job Redesign+), which funds up to 70% of workforce transformation and job redesign project costs.
Regional employers redesigning roles can weigh shared services or offshore outsourcing options, starting with OA’s list of the top BPO companies worldwide. MOM will publish its full third-quarter labour market report in mid-December 2026.
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