MOM warns of advance signs pointing to 'emerging weaknesses' in labour market
Retrenchments in Singapore continued increasing in the third quarter of 2026, according to fresh data from the Ministry of Manpower (MOM), with signs pointing to "emerging weaknesses" that it said warrant close monitoring.
MOM's Labour Market Advance Release for Q3 2026 showed retrenchments rising to 4,800, up from the 4,620 in 2Q 2026, with the incidence of retrenchment remaining at two per 1,000 employees.
"Retrenchments remained elevated in selected outward-oriented sectors, while business reorganisation continued to be the main driver of retrenchments," MOM said.
Sectors where retrenchments remained elevated include Information & Communications, Financial Services, and Manufacturing.
This is the highest number of retrenchments recorded in Singapore since the fourth quarter of 2020, and marks the continued rise in retrenchments in the city-state this year.
The rising retrenchment cases come as forward-looking indicators show that the share of firms expecting to retrench also edged up to 3.1% in September 2026, up from 2.8% in August.
"This increase, alongside higher actual retrenchments, points to emerging weaknesses in parts of the labour market that warrant close monitoring, even as the overall market continued to expand," the report read.
Expanding labour market
Overall, MOM said advance data indicate that Singapore's labour market continued to expand in the third quarter, with total employment growing by 27,000.
Both resident and non-resident employment grew faster than the previous quarter, according to MOM. Essential and public services continued to support resident employment growth, while Construction and Manufacturing sectors continued to contribute to non-resident employment.
Unemployment remained unchanged at 2.0% in September 2026, but resident and citizen unemployment rates edged up slightly to 3.0% and 3.1%, respectively, according to MOM.
Firms expecting to hire over the next three months also increased to 42.3% in September 2026, while companies expecting to hike wages went up to 19.9%.
"However, both remained below July's levels, suggesting that employers remained cautious about hiring and wage increases amid continued uncertainty," MOM said.
MOM urged employers to keep adapting and investing in their workforce amid an uncertain global outlook and rapid technological change.
Existing support for employers includes reskilling schemes, such as the Career Conversion Programmes and Mid-Career Pathways Programme. The government also offers a SkillsFuture Workforce Development Grant that will provide funding of up to 70% for workforce transformation and job redesign project costs.
"The Government will continue to support employers and workers in doing so, including reviewing existing schemes and strengthening support where appropriate," MOM said.
