2Q 2026 Labour Market Advance Release: Retrenchments rose even as Singapore's total employment continued to grow

• Retrenchments rose to 4,500 in 2Q 2026, driven mainly by business restructuring in selected outward-oriented sectors.

• Despite the increase in layoffs, total employment grew by 10,700, marking Singapore's 19^th consecutive quarter of employment growth.

• NTUC will continue supporting workers through AI-ReadySG, the Tripartite Jobs Council and career services to help them stay employable in a changing economy.

Retrenchments continued its upward trend in the second quarter of 2026, increasing to 4,500 from 3,830 in the first quarter of the year. The incidence of retrenchment also rose from 1.6 to 1.9 per 1,000 employees.

According to the Labour Market Advance Release by the Ministry of Manpower (MOM) on 31 July 2026, the increase in retrenchments was concentrated in outward-oriented sectors like Information & Communications and Manufacturing.

The advance estimates also noted that workforce downsizing was primarily driven by business restructuring, rather than a broad-based weakening of the labour market.

On the retrenchment numbers, MOM said the levels remain well below those typically seen during economic downturns.

Total employment grows for the 19^th consecutive quarter

Despite the rise in retrenchments, the advance estimates showed that total employment continued to grow in 2Q, marking the 19^th consecutive quarter of growth since 4Q 2021.

2Q 2026 saw total employment expand by 10,700, up from 9,400 in 1Q 2026.

MOM said employment growth remained broad-based and was similar to the 10,400-growth seen in 2Q 2025.

The second quarter saw resident employment continue to expand, led by essential and public services, albeit at a slower pace than the first quarter.

Growth was primarily driven by non-resident workers, particularly in the Construction and Manufacturing sectors.

Meanwhile, unemployment rates remained low and stable in June 2026, at 2 per cent overall, 2.9 per cent for residents, and 3 per cent for citizens.

Labour market outlook

Looking ahead, MOM expects labour demand to remain healthy.

The ministry noted that hiring sentiment improved in June, with a larger proportion of employers expecting to hire and raise wages over the next three months.

The proportion of employers planning to raise wages also increased from 23.7 per cent to 29.3 per cent over the same period.

Concurrently, the share of firms expecting to retrench fell from 3.2 per cent in May to 2.7 per cent in June. MOM said that this suggests that employers remain cautiously optimistic despite ongoing global economic uncertainties and business restructuring in some industries.

For workers navigating an evolving job market, continuous skills upgrading and career resilience remain key.

Upgrading competitive capabilities

On continuous skills upgrading, NTUC has been strengthening support for workers through initiatives such as AI-ReadySG, which equips workers with practical artificial intelligence knowledge and skills to remain competitive as workplaces transform.

The Labour Movement is also working with the Government and employers through the Tripartite Jobs Council (TJC) to identify emerging job opportunities, facilitate workforce transformation and help workers transition into quality jobs as industries evolve.

Meanwhile, workers looking for support in career coaching, skills upgrading and employment assistance can approach NTUC's e2i (Employment and Employability Institute) to seize new opportunities in an increasingly technology-driven economy.

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