In the first quarter of 2026, Singapore experienced a significant rise in retrenchments, with 3,830 workers laid off—a level not seen since the third quarter of 2023. This uptick is primarily attributed to ongoing business restructuring across various sectors.
The Ministry of Manpower's Labour Market Report indicates that the manufacturing, financial services, and professional services sectors were particularly affected. Notably, degree holders and Professionals, Managers, Executives, and Technicians (PMETs) faced the highest retrenchment rates, reflecting the impact of organizational changes in these industries.
Despite the rise in retrenchments, Singapore's overall employment figures remain positive. Total employment grew by 9,400 in the first quarter of 2026, marking the 18th consecutive quarter of employment growth since the fourth quarter of 2021.
The unemployment rate held steady at 2%, with the share of retrenched residents finding new employment within six months increasing to 60.7%, up from the previous quarter.
Looking ahead, the labour market is expected to continue expanding, though firms are becoming more cautious in their hiring plans. The proportion of companies expecting to hire has edged down slightly, from 44.1% in September 2025 to 43.3% in December 2025.
For a more in-depth analysis of this trend, you can watch the following video: