MOM: Singapore job retrenchments show sharper rise in Q1 among degree holders and older workers

SINGAPORE: Singapore’s retrenchment numbers edged higher in the first quarter of 2026, with degree holders and older workers bearing a bigger share of the impact as companies continue to reorganise and reshape their operations.

According to Singapore’s Ministry of Manpower (MOM), 3,830 workers were retrenched between January and March, up from 3,690 in the previous quarter. The increase was largely linked to restructuring exercises rather than cost-cutting measures. Manufacturing, financial services, and professional services accounted for many of the affected jobs.

The figures, released on June 15, suggest that companies continue to adjust their workforce needs amid economic uncertainty, technological changes, and changing business priorities.

Degree holders get hit the hardest by employment restructuring

One of the more striking trends was the rise in retrenchment rates among degree holders. MOM said the retrenchment incidence for degree holders rose from 2.6 to 3.1 per 1,000 resident employees in the first quarter, the highest among all education groups.

The ministry linked this to ongoing restructuring in professional and knowledge-based industries, where higher-skilled roles are more common.

Meanwhile, workers with secondary school qualifications or lower saw retrenchment incidence fall to 0.7 per 1,000 employees. Those holding diplomas or professional qualifications also recorded lower rates.

The numbers suggest that today’s job changes are no longer concentrated in lower-skilled sectors. Increasingly, white-collar professionals are finding themselves affected by corporate restructuring efforts.

Professionals, managers, executives and technicians (PMETs) continued to record the highest retrenchment incidence among occupational groups at 2.6 per 1,000 resident employees.

Older workers also face rising job retrenchment rates

Workers aged 50 to 59 experienced a rise in the incidence of retrenchment from 2.8 to 3.1 per 1,000 resident employees. While the increase was small, it adds to concerns among mature workers who may face greater challenges when changing careers or adapting to new job requirements.

Still, MOM stressed that labour market conditions are healthy overall. The overall retrenchment incidence stood at 1.6 per 1,000 employees, which the ministry described as remaining within normal, non-recessionary levels.

There was also some positive news for workers who lost their jobs. The proportion of residents who found employment within six months after retrenchment improved to 60.7%, up from 57.4% in the previous quarter. Improvements were seen among PMETs, degree holders, and younger workers.

Manpower Minister Tan See Leng said the faster return to employment was encouraging, even though losing a job is still a difficult experience for affected workers.

AI is changing jobs more than replacing them

MOM’s quarterly labour market report included findings on artificial intelligence (AI) and its impact on employment. The ministry’s earlier research found that only 6.2% of firms using or testing AI reported workforce reductions, while 8.5% reported reduced hiring. A much larger share, 18.9%, redesigned jobs after adopting AI.

Dr Tan said the evidence so far suggests AI is reshaping work rather than replacing workers outright. About 85% of AI users reported gains in productivity, time savings and work quality. MOM said this reinforces the need for workers to continue upgrading their skills as businesses adopt new technologies.

AI adoption is relatively low, with only 28.5% of companies in Singapore using the technology. Uptake is highest in sectors such as information and communications, professional services, and financial services.

Hiring slows as workers stay attached

Employment continued to grow during the quarter, although at a slower pace. Total employment increased by 9,400 workers, compared with 17,700 in the previous quarter. Resident employment growth actually strengthened, while growth in non-resident employment slowed.

At the same time, workers seemed increasingly cautious about changing jobs. The average monthly resignation rate fell to a historic low of 1%. Recruitment rates also dropped to one of their lowest levels in recent years. MOM believes workers are choosing stability amid global economic uncertainty.

Job vacancies also slipped from 77,700 in December 2025 to 73,300 in March 2026. Even so, vacancies continued to outnumber unemployed people, with 1.46 vacancies available for every unemployed person.

Companies are increasingly choosing shorter work weeks over layoffs

Another trend gaining attention is the growing use of short workweeks and temporary layoffs. The number of workers placed on these arrangements rose to 1,230 in the first quarter, the highest level since late 2021.

These measures are viewed as alternatives to retrenchment because employees are attached to their employers and retain benefits while companies ride out temporary slowdowns.

MOM said the rise was most visible in manufacturing and construction, suggesting some firms are opting for temporary adjustments rather than permanent job cuts.

Skills upgrading, adaptability, and career mobility are important for workers to stay employable

The latest figures paint a picture of a labour market that is resilient but changing shape. Increasingly, the challenge is whether workers possess the skills that growing sectors require.

Degree holders and experienced professionals, long seen as generally insulated from layoffs, are now feeling the effects of corporate restructuring and technological change.

Staying employable may matter more than staying comfortable. Skills upgrading, adaptability, and career mobility are becoming increasingly important as industries continue to reinvent themselves.