In the first quarter of 2026, Singapore experienced a significant rise in retrenchments, reaching 3,830 workers — a level not seen since the third quarter of 2023. This uptick is primarily attributed to ongoing business restructuring across sectors such as manufacturing, financial services, and professional services.
The Ministry of Manpower (MOM) reports that the retrenchment incidence remained steady at 1.6 per 1,000 employees, aligning with pre-pandemic non-recessionary averages. Despite the increase in layoffs, the overall labor market has shown resilience. Unemployment rates have remained low, and job vacancies continue to outnumber unemployed residents, indicating a robust employment landscape.
Notably, degree holders and Professionals, Managers, Executives, and Technicians (PMETs) have been disproportionately affected by these layoffs. The retrenchment incidence for degree holders rose from 2.6 to 3.1 per 1,000 resident employees, reflecting the impact of organizational restructuring in professional and knowledge-intensive industries.
In response to these developments, the MOM anticipates that firms will remain cautious in their hiring and wage decisions in the coming months. While retrenchments may edge up in some outward-oriented sectors, they are expected to stay within non-recessionary levels.
As Singapore continues to navigate these economic shifts, monitoring the evolving employment trends will be crucial for understanding the broader implications for the workforce and the economy.