Singapore labour market adds 10,700 jobs in Q2, unemployment stays at 2%

Singapore’s labour market continued to expand in the second quarter of 2026 despite global economic uncertainty, with total employment rising by 10,700 and unemployment remaining low and stable, according to advance data from the Ministry of Manpower (MOM).

The increase marks the 19th consecutive quarter of employment growth since the fourth quarter of 2021. Employment growth accelerated from 9,400 in the first quarter and was broadly in line with the 10,400 increase recorded in the same quarter last year.

Resident employment continued to rise, although at a slower pace than in the previous quarter, with growth concentrated mainly in essential and public services. Non-resident employment, meanwhile, became the main driver of overall employment growth in Q2, particularly in the Construction and Manufacturing sectors.

Unemployment remained broadly unchanged in June, with the overall rate at 2.0%, while resident unemployment stood at 2.9% and citizen unemployment at 3.0%. These figures were largely comparable with March, when overall and resident unemployment were also 2.0% and 2.9%, respectively.

However, retrenchments increased during the quarter. The number of workers retrenched rose from 3,830 in Q1 to 4,500 in Q2, lifting the retrenchment incidence from 1.6 to 1.9 per 1,000 employees. MOM said the increase was concentrated in selected outward-oriented sectors and was driven primarily by business restructuring.

Despite the rise, retrenchments remained well below levels typically associated with economic downturns. For comparison, quarterly retrenchments ranged between 5,980 and 12,760 during the 2009 Global Financial Crisis and between 5,640 and 9,120 during the Covid-19 pandemic.

Hiring sentiment also improved in June. The proportion of employers expecting to hire over the next three months increased from 40.6% in May to 43.9% in June. At the same time, the share expecting to raise wages climbed from 23.7% to 29.3%, while the proportion expecting to retrench declined from 3.2% to 2.7%.

The MOM said the improvement in hiring, wage and retrenchment expectations points to resilient labour demand, although businesses remain cautious amid economic uncertainties and continued restructuring in some sectors.

The ministry stressed the need for employers and workers to continuously upgrade their capabilities in response to global economic headwinds and rapid technological change. It highlighted government support for workforce transformation, reskilling and upskilling through programmes including Career Conversion Programmes, Mid-Career Pathways and the SkillsFuture Workforce Development Grant.

For fresh graduates, the GRaduate Industry Traineeships (GRIT) programme provides an alternative entry point into the workforce, while eligible involuntarily unemployed individuals can receive temporary financial support of up to S$6,000 over six months under the SkillsFuture Jobseeker Support scheme.

MOM’s full Labour Market Report for Q2 2026, due in mid-September, will provide further details on employment by resident status and sector, job vacancies, labour turnover and re-entry rates among retrenched residents.