MOM: 4.5K Singapore workers were laid off as retrenchments reach highest quarterly levels since 2020

Summary

• Singapore recorded 4,500 retrenchments between April and June, a 17.5% increase from the previous quarter and the highest quarterly total since late 2020.

• Total employment still grew by 10,700 jobs in Q2, while the overall unemployment rate stayed unchanged at 2% in June 2026.

• More firms expected to hire and raise wages over the next three months, while fewer anticipated carrying out retrenchments.

SINGAPORE: Singapore’s layoffs climbed to their highest quarterly level since the pandemic, even though employers continued adding jobs across the economy.

A total of 4,500 workers were retrenched between April and June, up from 3,830 in the first quarter. The 17.5% increase marks the highest quarterly retrenchment figure since the fourth quarter of 2020, when COVID-19 disruptions led to 5,640 layoffs.

The rise was mainly linked to business restructuring rather than a broad pullback in hiring, the Ministry of Manpower (MOM) released the figures on July 31.

Business restructuring drove most job cuts

MOM said the increase was centred on outward-facing sectors, especially information & communications and manufacturing.

The ministry explained that restructuring efforts accounted for most of the retrenchments. The data suggest companies are reshaping their operations rather than responding to a sharp fall in overall labour demand.

Layoffs have risen, yet other labour market indicators continue to show employers are still recruiting.

Employment continued to rise despite layoffs

Singapore added 10,700 jobs in the second quarter, up from 9,400 in the previous quarter. The figure was also close to the 10,400 jobs added during the same period in 2025.

Employment growth among Singapore citizens and permanent residents slowed, with most gains coming from essential and public services. Foreign workers accounted for much of the overall employment increase, particularly in the construction and manufacturing sectors.

Meanwhile, the overall unemployment rate stayed unchanged at 2% in June 2026. Taken together, the figures paint a mixed picture. Some industries are cutting roles, while others continue expanding their workforce.

Employers still expect to hire

MOM’s latest business sentiment survey suggests companies haven’t abandoned their hiring plans. By June, 43.9% of employers expected to increase hiring over the following three months, up from 40.6% in May.

More businesses also planned to raise wages. The share climbed from 23.7% in May to 29.3% in June. At the same time, fewer firms expected to carry out retrenchments. This figure fell from 3.2% to 2.7%.

MOM said these trends show labour demand is still holding up, although hiring and wage expectations haven’t recovered to the levels seen before the economic shock caused by the war in Iran earlier this year.

The ministry also said businesses are still expected to stay careful when making hiring and pay decisions over the coming months.

Singapore’s labour market has shown before that retrenchments don’t always signal a lasting downturn. When restructuring replaces weak demand as the main reason for layoffs, workers face short-term disruption, but hiring can continue elsewhere.

That process makes retraining, job matching and skills upgrading just as important as creating new jobs. The faster displaced workers move into new roles, the healthier the labour market becomes.

Read related: SG Transport Minister: Younger Singaporean workers will require continuous retraining as they’re unlikely to work with just one employer for long