Singapore's labour market is facing a period of instability, with official data revealing that the number of job cuts has reached its highest level in six years. According to a labour market report released by the Ministry of Manpower on Friday, retrenchments climbed to 4,800 during the third quarter of 2026. This figure marks an increase from the 4,620 layoffs recorded in the previous quarter and represents the highest number of workers let go since the final quarter of 2020, a period defined by the peak of the global Covid-19 pandemic.
The ministry attributed this upward trend in job losses primarily to widespread business reorganisations. These restructuring efforts have kept retrenchment numbers elevated, particularly within outward-oriented sectors of the economy. Following the significant contraction seen in 2020—when the city-state’s population declined due to travel restrictions and the subsequent departure of many foreign workers—the market had experienced a period of relative tightening. However, the latest figures suggest a shift in this momentum.
Despite the concerning rise in redundancies, the broader labour market data presents a somewhat paradoxical picture of continued growth. The ministry reported that total employment in Singapore expanded by 27,700 during the July-to-September period. This growth is significantly higher than the 11,400 increase seen in the second quarter of the year and also surpasses the 25,100 growth figure recorded during the same period in 2025.
Regarding unemployment, the overall rate remained steady at 2.0% as of September 2026. However, a deeper look at the demographics reveals a slight tightening for the local workforce. Unemployment rates specifically for residents and citizens edged up marginally, reaching 3.0% and 3.1% respectively, compared to the 2.9% and 3.0% recorded in August. These shifts indicate that while the economy is still creating jobs, specific segments of the population are finding it increasingly difficult to navigate the changing professional landscape.
Looking ahead, the outlook for the coming months remains cautious. The share of companies indicating an intention to retrench staff over the next quarter has increased to 3.1%, up from 2.8% a month earlier. This rise in business expectations regarding further job cuts has prompted the Ministry of Manpower to call for greater vigilance.
In its official commentary, the ministry highlighted the complexity of the current economic environment. "While the labour market continued to expand, retrenchments remained elevated and, together with higher intentions to retrench, point to emerging weaknesses in parts of the labour market that warrant close monitoring," the ministry stated. The government now faces the challenge of managing these pockets of weakness to ensure the long-term stability of the workforce.
As Singapore moves into the final quarter of 2026, analysts and policymakers are expected to track these indicators closely. The combination of strong employment growth alongside a persistent rise in layoffs suggests that while the economy remains robust in aggregate, the underlying mechanics of the labour market are undergoing a significant transition. Whether this volatility will persist or stabilize in the coming year remains a focal point for the nation's economic observers.
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