SINGAPORE: The city-state’s Ministry of Manpower (MOM) has reported that, on average, 2,680 non-resident employees were retrenched annually between 2021 and 2023.
According to the latest HRD Asia report, this statistic sheds light on the challenges migrant workers face in the country’s dynamic job market. The figures, released in response to a parliamentary inquiry, reveal insights into the industries most affected by retrenchment during this period.
Retrenchment numbers and affected industries
According to MOM, the retrenchment data is categorized by employees’ residential status but not by their work-pass type. From 2021 to 2023, non-resident employees in sectors such as Electronics Manufacturing, Information & Communications, and Wholesale Trade were most likely to face layoffs.
While retrenchment is a difficult process for both employees and employers, MOM noted that nearly nine in 10 of those laid off were provided with retrenchment benefits. This highlights Singapore’s commitment to ensuring fair treatment of workers during such challenging times.
Responsible retrenchment practices and the path forward
The Ministry also emphasized the importance of responsible and sensitive retrenchment practices. Singapore’s Tripartite Advisory for Managing Excess Manpower urges employers to view retrenchment as a last resort, aiming to retain core capabilities and support workforce loyalty.
The advisory underscores that retrenchments should be executed with empathy, as the impact on employees and their families can be profound. Additionally, the 2024 retrenchment figures indicated a decline in overall layoffs, with numbers falling from 14,590 in 2023 to 12,930. The primary reason for this decrease was business reorganizations and restructuring, signalling that companies are striving to adapt rather than shut down.
With retrenchment rates declining, it seems Singapore’s labour market is on a path of gradual recovery, reinforcing the importance of responsible business strategies for long-term stability.
Netizen reactions
On social media, the comments generally expressed why non-resident workers’ retrenchment was even a concern.
“Why are we (concerned) about non-resident workers retrenchment? They are transient and will leave Singapore (to return) to their home country when their employment is terminated,” one said.
“Are we supposed to be happy that more foreigners are retrenched, and how (does) this help the locals?” commented another, questioning the broader impact