RETRENCHMENTS in Singapore rose to 4,800 in the third quarter of 2026, the highest level since late 2020, amid continued restructuring and job cuts in selected outward-oriented sectors.
Preliminary labour market data released by the Ministry of Manpower (MOM) on Friday showed that layoffs increased 3.9 per cent from 4,620 in the previous quarter.
The retrenchment rate remained unchanged at 2.0 per 1,000 employees.
Business reorganisation continued to be the main reason for job cuts, with retrenchments remaining elevated in sectors such as information and communications, financial services and manufacturing.
The Straits Times reported on Friday that despite the increase in layoffs, total employment grew by 27,700 in the quarter, accelerating from 11,400 in the previous three months and 25,100 in the same period last year.
Non-residents accounted for most of the employment growth, particularly in construction and manufacturing, while resident employment gains were mainly supported by essential and public services.
The overall unemployment rate remained at 2.0 per cent in September, although the rates for residents and citizens edged up to 3.0 and 3.1 per cent respectively, from 2.9 and 3.0 per cent in August.
MOM said more companies expected to hire and raise wages over the next three months, although a slightly larger proportion also anticipated retrenchments.
The share of firms expecting to hire rose to 42.3 per cent in September from 30.5 per cent in August, while those planning wage increases increased to 19.9 per cent from 16.9 per cent.
However, the proportion of firms expecting to retrench workers also rose to 3.1 per cent from 2.8 per cent.
"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," MOM said.
The ministry is scheduled to release more comprehensive third-quarter labour market data in mid-December. - October 30, 2026
