Retrenchments surge to highest level in Singapore since pandemic

The uptick in layoffs comes despite broader economic stabilisation, suggesting that restructuring pressures remain strong even as Singapore’s economy continues to expand. — AFP pic

By Malay Mail

First Published: Monday, 21 Sep 2026 3:18 PM MYT

SINGAPORE, Sept 21 — Retrenchments in Singapore climbed to their highest level since the height of the Covid‑19 pandemic, with layoffs rising sharply in the second quarter of 2026 amid continued business restructuring.

SCMP reported that according to the Manpower Ministry’s latest labour market report, 4,620 workers were retrenched between April and June, up from 3,830 in the first quarter. This marks the highest quarterly figure since late 2020, when the pandemic triggered widespread job cuts.

The ministry attributed the rise primarily to business reorganisation and restructuring, rather than cost‑cutting or company closures.

While the report did not detail sector‑specific breakdowns, the ministry noted that firms are adjusting workforce needs as they digitalise, automate and streamline operations — trends that have persisted since the pandemic years.

The uptick in layoffs comes despite broader economic stabilisation, suggesting that restructuring pressures remain strong even as Singapore’s economy continues to expand.

Despite the spike in retrenchments, Singapore’s labour market has generally remained stable, with unemployment rates staying low and job vacancies still outnumbering jobseekers.

Economists say the latest figures reflect a transitional phase as companies recalibrate roles and skill requirements, particularly in sectors undergoing technological shifts.