Singapore employment rises in Q3 as retrenchments hit nearly six-year high

SINGAPORE: Singapore’s labour market added more jobs in the third quarter, but the rise came alongside another increase in retrenchments. The Ministry of Manpower (MOM) reported 27,700 additional jobs, while 4,800 workers lost theirs.

The figures, released on Friday (Oct 30), show an economy still creating jobs, while some industries continue to cut staff numbers. Retrenchments reached their highest quarterly level in nearly six years, despite the overall unemployment rate staying at 2 per cent.

MOM’s advance labour market release for the third quarter of 2026 also showed that employment growth came mainly from non-resident workers. This raises questions about how different groups of workers are experiencing the changing job market.

Employment growth is being led by non-resident workers

Non-resident workers accounted for most of the increase in employment, primarily in construction and manufacturing. Resident employment gains came mainly from essential and public services.

These included public administration and education, transport and storage, and health and social services. Meanwhile, growth in outward-facing industries was weaker amid global economic uncertainty, Channel News Asia (CNA) reported (Oct 30).

The figures also show that job growth doesn't necessarily mean every group benefits equally. Singapore can add thousands of jobs while some local workers face tougher conditions.

Retrenchments reach their highest level since 2020

The 4,800 retrenchments recorded in Q3 were up from 4,620 in the previous quarter. The figure was last exceeded in Q4 2020, when 5,640 workers lost their jobs.

Information and communications, financial services, and manufacturing continued to see elevated levels of retrenchment. Business reorganisation was the main reason behind the job cuts.

The overall unemployment rate stayed at 2 per cent in September. However, the resident unemployment rate rose from 2.9 to 3 per cent. The citizen unemployment rate also increased from 3 to 3.1 per cent.

NTUC Assistant Secretary-General Yeo Wan Ling highlighted the mismatch between jobs being created and those disappearing.

She pointed out that workers losing older roles may need different skills to move into new positions. She also urged employers to explore retraining and redeployment with unions before considering retrenchments.

More employers expect to hire, but job cuts remain a concern

There was some encouragement in September’s business outlook. The share of firms expecting to hire within three months rose from 30.5 per cent to 42.3 per cent.

Companies planning wage increases also rose from 16.9 per cent to 19.9 per cent. However, both figures were below July’s levels.

More concerning was the rise in firms expecting to retrench workers. Their share increased from 2.8 per cent in August to 3.1 per cent in September.

MOM said these figures, together with actual job losses, pointed to weaknesses in parts of the labour market.

Skills support available for workers facing job changes

MOM highlighted several existing schemes to help workers and employers adjust.

Eligible unemployed workers can receive up to S$6,000 over six months through the SkillsFuture Jobseeker Support scheme. Mid-career Singaporeans can also access a S$4,000 SkillsFuture Credit top-up and training allowance.

Fresh graduates from the 2026 cohort can apply for GRaduate Industry Traineeships (GRIT). Employers can also tap workforce training and job redesign schemes.

The full Q3 2026 Labour Market Report is expected in mid-December, with more details on vacancies, employment by sector and how retrenched residents return to work.