Singapore Q2 2026 Layoffs Climb to Highest Since 2020
Singapore's Ministry of Manpower reported 4,620 retrenchments in Q2 2026, a significant rise driven by business restructuring in key outward-oriented sectors.
Retrenchments Reach 2020 Levels
Singapore recorded 4,620 retrenchments in the second quarter of 2026, a figure not seen since the peak of the Covid-19 pandemic in late 2020. This marks an increase from the 3,830 layoffs reported in the first quarter of this year, according to the Ministry of Manpower's latest labour market report.
The current level is the highest since the 5,640 retrenchments observed in the fourth quarter of 2020, with the ministry attributing the recent rise to ongoing business reorganisation and restructuring efforts.
Outward-Oriented Sectors Affected
The quarter-on-quarter increase in retrenchments was primarily concentrated in Singapore's outward-oriented sectors. These include manufacturing, information and communications, and financial services. Furthermore, the proportion of Singapore residents who found new employment within six months of being retrenched declined to 54.9% in Q2 2026.
This is a noticeable drop from the 60.7% re-entry rate recorded in the previous quarter. The 12-month re-entry rate, however, remained broadly stable at 69.8%.
Job Vacancies Decline Amid Stable Unemployment
Despite the rise in layoffs, Singapore's overall unemployment rate remained stable at 1.9% in Q2 2026. Resident and citizen unemployment rates also held steady at 2.9% and 3% respectively. However, the Ministry of Manpower noted a decline in the number of job vacancies during the quarter.
Opportunities for professionals, managers, executives, and technicians (PMETs) in financial services and information and communications saw a particular reduction. Even with this decline, job vacancies continued to outnumber unemployed persons, with a ratio of 1.48 to 1 in June 2026.
The increase in retrenchments, particularly in key export-driven sectors, suggests an easing of labour market tightness in these areas. Companies in manufacturing, tech, and finance may find a larger pool of available talent, potentially influencing hiring strategies and salary expectations.
While overall unemployment remains low, the decline in PMET vacancies indicates specific challenges for skilled workers in previously high-growth industries. Businesses should monitor these sectoral shifts for their impact on talent acquisition and operational costs in the coming quarters.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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