Singapore retrenchments hit highest quarterly level since 2020, with 4,500 workers laid off

Layoffs climbed 17.5% from the previous quarter, although Singapore’s overall employment continued to grow

Singapore recorded its highest quarterly retrenchment figures since the pandemic in the second quarter of 2026, even as the country’s labour market continued to add jobs.

According to preliminary labour market data released by the Ministry of Manpower (MOM) today (Jul 31), 4,500 workers were retrenched between Apr and Jun, up from 3,830 in the previous quarter—a 17.5% increase.

It’s the highest quarterly layoff figure since the fourth quarter of 2020, when Singapore saw 5,640 retrenchments during the COVID-19 pandemic.

MOM said the increase was concentrated in outward-oriented sectors such as information and communications and manufacturing, with most layoffs driven by business restructuring.

Employment growth remained positive

Despite the rise in layoffs, Singapore’s overall employment continued to grow.

Total employment, which includes both Singapore residents and foreign workers, increased by 10,700 in Q2, up from 9,400 in the first quarter. The figure is also broadly in line with the 10,400 jobs added in Q2 2025.

However, employment growth among Singapore citizens and permanent residents slowed compared to the previous quarter, with most gains coming from essential and public services.

Meanwhile, the bulk of overall employment growth came from foreign workers, particularly in the construction and manufacturing sectors.

The country’s unemployment rate also remained steady, with overall unemployment holding at 2% in Jun 2026, unchanged from the previous quarter.

Companies are still planning to hire

Looking ahead, MOM’s latest business sentiment indicators suggest employers are still planning to hire despite ongoing economic uncertainty.

As of June, 43.9% of firms expected to increase hiring over the next three months, up from 40.6% in May. More employers also said they planned to raise wages, with the proportion rising from 23.7% to 29.3% over the same period.

At the same time, the share of firms expecting to retrench workers fell from 3.2% to 2.7%.

MOM said these trends point to labour demand remaining resilient, although hiring and wage expectations have yet to return to pre-crisis levels seen before the energy shock triggered by the Iran war earlier this year.

“The improvement in hiring, wage and retrenchment expectations points to labour demand that remains resilient,” the ministry said.

However, it added that businesses are still likely to remain cautious when making hiring and salary decisions in the coming months.

• Read other articles we’ve written on Singapore’s job landscape here.

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