Layoffs rose in the second quarter of 2026, even as the Singapore labour market continued to expand, according to preliminary labour market data released by the Ministry of Manpower (MOM) on July 31.
There were 4,500 retrenchments in the April to June period, up from 3,830 in the January to March period. This reflected the highest number since the last quarter of 2020. MOM noted that this second-quarter figure remained lower than those reported during the Covid-19 pandemic, which ranged from 5,640 to 9,120.
The 17.5 percent increase was concentrated in some outward-oriented sectors – such as information and communications and manufacturing – driven primarily by business restructuring, according to MOM.
Foo See Yang, managing director and strategic business group head at human resource solutions firm Persol Asia-Pacific, said outward-oriented sectors often rely on external demand, including exports, international trade, foreign investment and global supply chains.
“This makes them more vulnerable to geopolitical tensions, trade policy shifts and fluctuations in the global economy. Ongoing uncertainty has prompted many businesses in these sectors to reassess their operating models, resulting in restructuring and workforce rationalisation,” he added.
The Republic’s total employment – the number of Singapore residents and foreign workers with jobs – grew by 10,700 in the second quarter of 2026, up from 9,400 in the preceding quarter. This is broadly similar to the 10,400 in the second quarter of 2025.
The number of Singaporeans and permanent residents with jobs grew at a slower pace than in the previous quarter, with growth concentrated in essential and public services.
Meanwhile, overall employment growth in the second quarter of 2026 was largely driven by foreign employment in construction and manufacturing.
Foo highlighted that public transport and infrastructure projects will continue to generate jobs as the Government expands connectivity and upgrades critical infrastructure to support Singapore’s growing population.
He added that the HR firm also sees job opportunities across construction, engineering, operations and maintenance. “As they are driven by national planning priorities, hiring in these areas will remain relatively resilient even when private-sector employment moderates.”
Similarly, a spokesperson for Jobstreet by SEEK said the strongest growth in the platform’s job postings was seen in the government and defence sectors, which reflected a 49 per cent jump from the first quarter to the second quarter of 2026.
“While artificial intelligence can automate tasks, areas such as policymaking and stakeholder engagement in public sectors continue to rely on human judgment,” added the spokesperson.
Unemployment rates in June 2026 remained broadly stable at 2 per cent, similar to those in the previous quarter.
Looking ahead, the proportion of firms expecting to hire in the next three months rose to 43.9 per cent in June 2026, up from 40.6 per cent in May 2026. Over the same period, the share of firms expecting to raise salaries also increased to 29.3 per cent, up from 23.7 per cent.
Meanwhile, the proportion of firms expecting to retrench employees declined to 2.7 per cent, down from 3.2 per cent.
DBS senior economist Chua Han Teng said the ministry’s forward-looking indicators suggest that “future layoffs should remain contained” even as businesses restructure in response to the rapidly evolving economic landscape.
In a separate report released by the Economic Development Board on July 31, the majority of firms – 74 per cent – polled in the manufacturing sector expect the employment level in the next three months of 2026 to remain broadly similar to that of the second quarter.
All clusters – including electronics, chemicals and precision engineering, except transport engineering – project a larger workforce, according to the report.
“Overall, the improvement in hiring, wage and retrenchment expectations points to labour demand that remains resilient,” said MOM.
“Although the uptick in hiring and wage sentiment was broad-based across sectors, these indicators remained below their pre-crisis levels in February,” it added, referring to the energy shock triggered by the Iran war which broke out in late February.
“This suggests that firms will likely continue to adopt some caution with their hiring and wage decisions in the near term.”
Foo pointed out that businesses have become “more accustomed” to operating amid global challenges including tariffs and geopolitical tensions, and are increasingly factoring these risks into their long-term business resilience planning.
“As business confidence stabilises, employers are proactively securing and retaining the talent needed to support business growth and transformation,” he added.
-The Strait Times
There were 4,500 retrenchments in the April to June period, up from 3,830 in the January to March period. This reflected the highest number since the last quarter of 2020. MOM noted that this second-quarter figure remained lower than those reported during the Covid-19 pandemic, which ranged from 5,640 to 9,120.
The 17.5 percent increase was concentrated in some outward-oriented sectors – such as information and communications and manufacturing – driven primarily by business restructuring, according to MOM.
Foo See Yang, managing director and strategic business group head at human resource solutions firm Persol Asia-Pacific, said outward-oriented sectors often rely on external demand, including exports, international trade, foreign investment and global supply chains.
“This makes them more vulnerable to geopolitical tensions, trade policy shifts and fluctuations in the global economy. Ongoing uncertainty has prompted many businesses in these sectors to reassess their operating models, resulting in restructuring and workforce rationalisation,” he added.
The Republic’s total employment – the number of Singapore residents and foreign workers with jobs – grew by 10,700 in the second quarter of 2026, up from 9,400 in the preceding quarter. This is broadly similar to the 10,400 in the second quarter of 2025.
The number of Singaporeans and permanent residents with jobs grew at a slower pace than in the previous quarter, with growth concentrated in essential and public services.
Meanwhile, overall employment growth in the second quarter of 2026 was largely driven by foreign employment in construction and manufacturing.
Foo highlighted that public transport and infrastructure projects will continue to generate jobs as the Government expands connectivity and upgrades critical infrastructure to support Singapore’s growing population.
He added that the HR firm also sees job opportunities across construction, engineering, operations and maintenance. “As they are driven by national planning priorities, hiring in these areas will remain relatively resilient even when private-sector employment moderates.”
Similarly, a spokesperson for Jobstreet by SEEK said the strongest growth in the platform’s job postings was seen in the government and defence sectors, which reflected a 49 per cent jump from the first quarter to the second quarter of 2026.
“While artificial intelligence can automate tasks, areas such as policymaking and stakeholder engagement in public sectors continue to rely on human judgment,” added the spokesperson.
Unemployment rates in June 2026 remained broadly stable at 2 per cent, similar to those in the previous quarter.
Looking ahead, the proportion of firms expecting to hire in the next three months rose to 43.9 per cent in June 2026, up from 40.6 per cent in May 2026. Over the same period, the share of firms expecting to raise salaries also increased to 29.3 per cent, up from 23.7 per cent.
Meanwhile, the proportion of firms expecting to retrench employees declined to 2.7 per cent, down from 3.2 per cent.
DBS senior economist Chua Han Teng said the ministry’s forward-looking indicators suggest that “future layoffs should remain contained” even as businesses restructure in response to the rapidly evolving economic landscape.
In a separate report released by the Economic Development Board on July 31, the majority of firms – 74 per cent – polled in the manufacturing sector expect the employment level in the next three months of 2026 to remain broadly similar to that of the second quarter.
All clusters – including electronics, chemicals and precision engineering, except transport engineering – project a larger workforce, according to the report.
“Overall, the improvement in hiring, wage and retrenchment expectations points to labour demand that remains resilient,” said MOM.
“Although the uptick in hiring and wage sentiment was broad-based across sectors, these indicators remained below their pre-crisis levels in February,” it added, referring to the energy shock triggered by the Iran war which broke out in late February.
“This suggests that firms will likely continue to adopt some caution with their hiring and wage decisions in the near term.”
Foo pointed out that businesses have become “more accustomed” to operating amid global challenges including tariffs and geopolitical tensions, and are increasingly factoring these risks into their long-term business resilience planning.
“As business confidence stabilises, employers are proactively securing and retaining the talent needed to support business growth and transformation,” he added.
-The Strait Times
