Singapore Layoffs Rise to Highest Level Since COVID-19 Pandemic in 2020; 4,800 Workers Affected
Singapore's labour market is showing signs of increasing pressure as the number of workers affected by retrenchments rose to its highest level since the COVID-19 pandemic in 2020. The country recorded 4,800 retrenchments during the third quarter of 2026, compared with 4,620 in the previous quarter, according to preliminary data released by Singapore's Ministry of Manpower on October 30.
The latest figure represents the highest quarterly number of retrenchments since the fourth quarter of 2020, when 5,640 workers lost their jobs during the pandemic period.
The increase has been primarily attributed to business reorganisations and restructuring activities, particularly in sectors exposed to international economic conditions. However, despite the rise in job cuts, Singapore's overall employment continued to expand during the quarter.
Singapore Records 4,800 Retrenchments in Q3 2026
According to the Ministry of Manpower's advance labour market report, Singapore recorded 4,800 retrenchments between July and September 2026.
This represents an increase of 180 compared with the 4,620 retrenchments recorded in the second quarter of the year.
The number of retrenchments had already increased in the previous quarter, raising concerns about the condition of the country's labour market. The latest figures indicate that job cuts have remained elevated.
The third-quarter figure is particularly significant because it marks the highest number of quarterly retrenchments since the final quarter of 2020. During that period, Singapore recorded 5,640 retrenchments as businesses struggled with the economic consequences of the COVID-19 pandemic.
Although the current situation is different from the pandemic-related economic disruption, the increase suggests that certain industries are facing considerable adjustment pressures.
Business Restructuring Behind Rising Job Cuts
The Ministry of Manpower identified business reorganisation as the main reason behind the increase in retrenchments.
Companies are restructuring their operations, adjusting business strategies and reviewing workforce requirements in response to changing economic conditions.
The impact has been particularly visible in outward-oriented industries. These include:
Manufacturing
Information and communications
Financial services
These sectors are closely connected to international markets and are influenced by global economic developments, business investment decisions and changing demand.
Manufacturing companies may adjust their workforce requirements as production strategies and international demand change. Financial institutions and technology businesses may also restructure operations to improve efficiency and respond to evolving market conditions.
The ministry noted that retrenchments remained elevated in selected outward-oriented sectors, even as other parts of the economy continued to generate employment opportunities.
Unemployment Rate Remains Stable
Despite the increase in retrenchments, Singapore's overall unemployment rate remained unchanged at 2% in September 2026.
However, the unemployment rates among residents and citizens increased slightly.
The resident unemployment rate rose to 3% in September from 2.9% in August. Meanwhile, the unemployment rate among Singapore citizens increased to 3.1% from 3% during the same period.
These figures indicate that the impact of labour market adjustments is not uniform across all categories of workers.
The increase in retrenchments is therefore an important indicator to monitor, even though the overall unemployment rate remains relatively low.
Employment Growth Continues Despite Retrenchments
One notable feature of Singapore's latest labour market report is that total employment continued to increase despite the rise in retrenchments.
Total employment grew by 27,700 in the third quarter of 2026. This was significantly higher than the increase of 11,400 recorded in the second quarter.
Employment growth was also higher than the 25,100 increase recorded during the corresponding quarter of 2025.
Both resident and non-resident employment contributed to the expansion.
Resident employment growth was mainly supported by essential and public services. Meanwhile, non-resident employment growth continued to be driven largely by sectors such as construction and manufacturing.
This suggests that while some companies are reducing their workforce, other industries continue to recruit workers.
However, the ministry noted that employment growth in outward-oriented sectors remained subdued amid global economic uncertainty.
Companies Becoming More Cautious About Hiring
The latest report also highlighted mixed signals in employers' hiring expectations.
The share of companies expecting to hire workers over the next three months increased from 30.5% in August to 42.3% in September 2026.
Similarly, the proportion of companies expecting to raise wages increased from 16.9% to 19.9% during the same period.
However, both indicators remained below their July levels, suggesting that employers were still cautious about hiring and salary increases.
At the same time, the share of companies expecting to retrench workers increased from 2.8% in August to 3.1% in September.
The ministry said that the combination of higher actual retrenchments and increased retrenchment expectations pointed to emerging weaknesses in certain parts of the labour market that required close monitoring.
What Does This Mean for Singapore Workers?
The increase in retrenchments could create additional challenges for workers seeking new employment opportunities, particularly those in industries undergoing restructuring.
Workers who lose their jobs may need more time to secure new positions, especially when companies become more selective about recruitment.
The impact may also differ depending on age, skills, professional experience and the industry in which a person works.
Employees in technology, financial services and manufacturing may need to pay closer attention to changing job requirements and opportunities for professional development.
Singapore's Ministry of Manpower has highlighted several support programmes to help workers improve their employability.
The SkillsFuture Level-Up Programme provides eligible mid-career Singaporeans with additional support for training and skills development. The SkillsFuture Credit Mid-Career top-up of S$4,000 is among the measures available to eligible individuals.
The SkillsFuture Jobseeker Support Scheme also provides temporary financial assistance of up to S$6,000 over six months to eligible involuntarily unemployed individuals who actively search for employment.
These initiatives are intended to help affected workers manage the transition between jobs and develop skills relevant to changing industry requirements.
What Is the Outlook for Singapore's Labour Market?
Singapore's labour market continues to show a mixed picture.
On one hand, employment is growing, and the overall unemployment rate remains stable. On the other hand, rising retrenchments, restructuring activities and cautious employer expectations suggest that some industries are facing increasing pressure.
The Ministry of Manpower has indicated that the comprehensive Labour Market Report for the third quarter of 2026 will be released in mid-December. It is expected to provide more detailed information about employment trends, job vacancies, retrenchments across industries and the employment outcomes of affected workers.
The coming months will be important in determining whether the increase in retrenchments is a temporary adjustment or part of a longer period of labour market restructuring.
For now, Singapore's latest figures highlight a growing contrast between overall employment expansion and job losses in selected industries. Although the country has not returned to the widespread employment disruption experienced during the COVID-19 pandemic, the latest retrenchment figures indicate that workers and employers will need to remain alert to changing economic conditions.
