MOM is working to track AI-driven job losses as retrenchments hit a five-year high
Singapore's Ministry of Manpower has said it is studying how to "better capture" the impact of AI and automation in retrenchment statistics amid news of AI-driven layoffs in the country and overseas.
MOM said this in response to a Parliamentary inquiry that asked whether the ministry was planning to enhance retrenchment statistics to show which were driven by AI or automation.
"It is currently difficult to isolate the impact of AI or automation as a primary driver of retrenchments as automation is typically implemented as part of broader business transformation or restructuring exercises," MOM said.
"The Ministry will continue to study how we can better capture the impact of AI and automation in its retrenchment statistics."
MOM's response comes as the latest Labour Market report showed that retrenchments went up to their highest level in more than five years during the second quarter of 2026.
The number of retrenchments climbed to 4,500 in 2Q 2026, bringing the country's incidence of retrenchment to 1.9 per 1,000 employees.
"The increase was concentrated in selected outward-oriented sectors such as Information & Communications and Manufacturing, with the majority of retrenchments driven by business reorganisation or restructuring," MOM said.
The statistics did not indicate which retrenchments were due to AI and automation, but it noted that the majority were "driven by business reorganisation or restructuring."
Singapore's retrenchment cases
Despite the absence of retrenchment figures broken down by cause, high-profile AI-driven layoffs have been making headlines in Singapore and overseas.
Among them is Standard Chartered, which announced earlier this year that it will cut approximately 7,800 back-office roles by 2030 as part of a sweeping AI-driven restructure.
The National Trades Union Congress (NTUC) also noted an increase in retrenchment and termination-related cases involving professionals, managers and executives (PMEs) in 2025.
According to the NTUC, job losses among PMEs are being driven by business restructuring, with offshoring and AI cited as key factors.
MOM has said that there is "no indication of widespread job displacement" because of AI.
An inaugural report released earlier this year found that only 6.2% of firms reduced headcount after adopting AI, with most instead redesigning roles or creating new AI-related positions.
"Larger firms were more likely to report these outcomes than smaller firms," MOM said in response to a separate Parliamentary inquiry.
"The Government will continue to monitor the adoption of AI and its impact, so that we can better support our businesses and workers to adopt AI in a way that creates good jobs and new opportunities for Singaporeans."
