Singapore’s Rising Retrenchments Signal a More Selective Labour Market

Singapore, 21 September 2026 – Singapore’s labour market continued to expand in the second quarter of 2026, but a rise in retrenchments, fewer job vacancies and weaker re-employment outcomes point to a more selective operating environment. The combination matters for investors because it suggests that headline resilience is increasingly masking pressure within outward-oriented industries and among experienced resident professionals.

Retrenchments rose to 4,620 during the April-to-June quarter, the highest quarterly total since the final three months of 2020. The incidence increased to 2.0 per 1,000 employees from 1.6 in the preceding quarter. Business reorganisation and restructuring in manufacturing, information and communications, and financial services accounted for much of the increase, linking the labour-market adjustment to sectors exposed to global demand, technology investment and corporate efficiency programmes.