Singapore retrenchments rise in Q1 as degree holders and older workers face sharper impact

SINGAPORE, June 15 — Retrenchments in Singapore climbed in the first quarter of 2026, with higher‑educated and older workers experiencing a more pronounced increase as companies continued restructuring efforts across key sectors.

CNA reported that layoffs rose to 3,830 between January and March, up from 3,690 in the previous quarter, with the Manpower Ministry (MOM) attributing most job cuts to organisational restructuring rather than cost‑cutting. The incidence of retrenchment among degree holders jumped from 2.6 to 3.1 per 1,000 resident employees — the highest across all education groups.

Older workers aged 50 to 59 also saw a rise in retrenchment incidence, from 2.8 to 3.1 per 1,000. MOM said the trend reflects ongoing adjustments in professional, financial and manufacturing industries, which remain sensitive to global conditions and technological shifts.

Despite the uptick, overall retrenchment incidence remained within non‑recessionary norms at 1.6 per 1,000 employees. Professionals, managers, executives and technicians (PMETs) continued to face the highest incidence among occupational groups, holding steady at 2.6 per 1,000.

Labour market resilience persisted in other areas. The share of retrenched residents who found work within six months improved to 60.7 per cent, up from 57.4 per cent previously. Manpower Minister Tan See Leng said the quicker re‑entry into employment was encouraging, even as workers navigate uncertainty linked to economic headwinds and the rise of artificial intelligence.

MOM’s report also incorporated, for the first time, data on AI’s impact on jobs. While a minority of firms adopting AI reported reduced hiring or headcount, a larger share redesigned roles instead. About 85 per cent of workers using AI tools reported productivity gains and better work quality.

Employment growth slowed, rising by 9,400 in Q1 compared with 17,700 in Q4 2025. The moderation was driven mainly by weaker non‑resident employment in construction and manufacturing. Resident employment, however, expanded more quickly than in the previous quarter, supported by gains in administrative support, travel‑related services, transportation and public administration.

Job vacancies fell to 73,300 in March from 77,700 in December, though vacancies continued to outnumber jobseekers. Unemployment rates remained stable at 2 per cent overall.

More firms turned to short work‑weeks or temporary layoffs — 1,230 employees were placed on such arrangements, the highest since late 2021. MOM said these measures suggest companies are using reduced hours to manage manpower needs rather than resorting to retrenchments.

Resignation rates also hit historic lows, with workers opting to stay put amid global uncertainty. Recruitment rates similarly dipped, reflecting cautious hiring sentiment.

MOM expects labour conditions to stay resilient but warned that firms may remain conservative in hiring and wage decisions if global risks persist.