SINGAPORE: Singapore's retrenchment rate in the second quarter of 2026 hit its highest level since the height of the COVID pandemic in late 2020, driven by business reorganisation and restructuring, the manpower ministry said on Monday.
Here are the details:
* There were 4,620 retrenchments in the second quarter of 2026, up from the 3,830 retrenchments posted in the first quarter of the year, the ministry said in its labour market report for the period.
* It is the highest since the 5,640 retrenchments recorded in the fourth quarter of 2020 during the COVID pandemic.
* Retrenchments fell after 2020 when Singapore's population declined as travel curbs and job losses encouraged foreign workers to leave the business hub, creating a tighter labour market.
* The manpower ministry said that the quarter-on-quarter increase was "concentrated in outward-oriented sectors, including manufacturing, information and communications and financial services".
* It also noted that the proportion of retrenched residents who returned to employment within six months declined to 54.9% in Q2 2026 from 60.7% in Q1. The 12-month re-entry rate remained broadly stable, at 69.8%.
* Singapore's overall unemployment rate remained stable at 1.9%, with resident and citizen unemployment rates holding at 2.9% and 3% respectively.
* The ministry said the number of job vacancies declined in Q2, with fewer opportunities for professionals, managers, executives and technicians in financial services and information and communications.
* However, vacancies continued to outnumber the number of unemployed persons, with the ratio at 1.48 to 1 in June 2026, the ministry said. - Reuters
