Singapore job cuts hit 4,620 as workers take longer to return to work

Singapore’s labour market continued to expand in the second quarter of 2026, but rising retrenchments and a slower return to employment pointed to growing pressure for some resident workers, according to the Ministry of Manpower (MOM).

Retrenchments rose to 4,620 between April and June, up from 3,830 in the previous quarter and the highest level since the fourth quarter of 2020. The retrenchment incidence increased to 2.0 per 1,000 employees from 1.6 in the first quarter.

Retrenchments increase

MOM attributed the increase largely to business reorganisation and restructuring in outward-oriented sectors, including manufacturing, information and communications, and financial services.

Despite the rise in job losses, total employment excluding migrant domestic workers grew by 11,400 in the second quarter. This marked the 19th consecutive quarter of employment growth and was higher than the 9,400 increase recorded in the first quarter.

The overall unemployment rate also remained low at 1.9% in June, down from 2.0% in March.

However, the long-term unemployment rate among residents edged up to 1.0% from 0.9%.

Workers face longer transitions

The number of job vacancies also declined, falling to 68,600 in June from 73,300 in March. The fall was largely linked to fewer vacancies in sectors including financial services.

MOM said the labour market was showing “signs of softening”, with resident employment growth moderating, retrenchments increasing and fewer retrenched workers returning to employment within six months.

The six-month re-entry rate fell to 54.9% in the second quarter from 60.7% in the previous quarter. The 12-month re-entry rate, however, remained stable at 69.8%.

Speaking to reporters during a visit to cybersecurity firm Acronis, Acting Manpower Minister Jasmin Lau said the changes showed that some workers were facing a more difficult transition between jobs.

“Fewer job vacancies were added this quarter, and some workers are finding the transition into their next role taking slightly longer. This is a concern for some Singaporeans,” she said.

Focus on career transitions

Lau said that while job opportunities remained available, moving from one role to another could still be challenging for some workers.

She pointed to career conversion programmes as one way to support mid-career workers by linking training directly to roles employers are seeking to fill.

“Instead of learning a new skill and then hoping to find a job that uses it, workers train for actual roles that companies need. They learn on the job, gain real experience, and build on the skills they already have,” she said.

MOM’s July business expectations survey pointed to a positive but cautious hiring outlook, with more sectors reporting plans to increase hiring over the next three months.

However, the proportion of firms expecting to raise wages edged down, while both hiring and wage expectations remained below February levels.

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