SINGAPORE: Retrenchments in Singapore climbed to their highest level in more than five years in the second quarter of 2026, even as the labour market continued to expand and employment grew for a 19th consecutive quarter.

Advance labour market figures released by the Ministry of Manpower (MOM) on Friday (Jul 31) showed 4,500 workers were retrenched in Q2, up from 3,830 in the preceding quarter. It was the highest quarterly figure since Q4 2020, when there were 5,640 retrenchments.

This also lifted the incidence of retrenchment to 1.9 per 1,000 employees from 1.6.

“The increase was concentrated in some outward-oriented sectors, driven primarily by business restructuring,” said MOM. 

In June, MOM said that an ongoing restructuring in professional and knowledge-intensive sectors drove a notable shift in layoffs among degree holders in Q1, with the incidence of retrenchment rising sharply for this group.

The ministry then noted the incidence of retrenchment rose among older workers aged 50 to 59 – from 2.8 to 3.1 per 1,000 resident employees.

But MOM said on Friday that Q2 retrenchment levels remained well below those typically seen during periods of downturn. 

It cited quarterly retrenchment figures ranging from 5,980 to 12,760 and 5,640 to 9,120 during the 2009 Global Financial Crisis and the COVID-19 pandemic respectively.

Despite the increase in retrenchments, total employment rose by 10,700 in Q2, extending a streak of growth to 19 consecutive quarters. This was up from 9,400 in the previous quarter, and broadly in line with the 10,400 increase recorded a year earlier.

Resident employment continued to grow, albeit at a slower pace than in the first quarter, driven mainly by hiring in essential and public services. Employment growth in the second quarter was led primarily by non-residents, particularly in the construction and manufacturing sectors.

Unemployment also remained low and broadly stable. In June, the overall unemployment rate stood at 2 per cent, unchanged from March. Resident unemployment held steady at 2.9 per cent, while citizen unemployment dipped to 3 per cent from 3.1 per cent in March.

The full labour market report for Q2 will be released in mid-September.